HC Deb 24 November 1925 vol 188 cc1123-4
7. Mr. SCURR

asked the President of the Board of Trade whether the sale of the Government shares in the British Dyestuffs Corporation to that company gave that company a free hand to make what arrangements they chose with the German combine, even though those arrangements involved the restriction of production in this country and the enhancement of prices, or whether it was made a condition of the sale that any such agreement should be published and should be subject to the approval of this House and that the obstacles in the way of the importation of foreign dyes should be continued if the agreement based on it was found to injure the dyeing industry?

15. Mr. HARRIS

asked the President of the Board of Trade whether, before disposing of Government shares in the British Dyestuffs Corporation, the House will have an opportunity to discuss the proposal and express its opinion thereon?

Sir P. CUNLIFFE-LISTER

I would refer the hon. Members to the answers which I gave yesterday. I have consulted the Chancellor of the Exchequer as to whether any Papers could usefully be laid, as suggested by the Leader of the Opposition. Before coining to a decision, the matter was very fully considered by the Committee of Civil Research and the Cabinet; but it would of course be contrary to all precedent to lay Papers with regard to these deliberations. The Treasury will, however, prepare a White Paper setting out the letter written to the company, the substance of which I gave in my answer yesterday, the reply of the company, and the reconstruction proposals which the company have submitted to the shareholders.

Mr. HARRIS

Will there be any restriction on the profits of the new company and of the dividends paid to the shareholders; and, if not, will there be any relaxation in the regulations as to the importation of dyes from abroad?

Sir P. CUNLIFFE-LISTER

No, Sir. The company will be in exactly the same position in regard to its dividends as any other dyestuffs company or industry.

Mr. HARRIS

Has this company not had the advantage of having Government money behind it?

Sir P. CUNLIFFE-LISTER

No. It has hitherto had the considerable disadvantage of having to suffer from Government interference.

Mr. MACLEAN

Is it not the case that this particular firm have had the advantage of Government money to pursue research work?

Sir P. CUNLIFFE-LISTER

That would be a very incomplete and inaccurate statement of the facts.

Colonel WEDGWOOD

Have the dye-users made any representations in connection with this question?

Sir P. CUNLIFFE-LISTER

I have received representations of one kind and another from a very large number of people. If the right hon. and gallant Member wants further information, he had better ask me a specific question.

Mr. SCURR

Have any arrangements been made with the German combine?

Sir P. CUNLIFFE-LISTER

No arrangements of any sort or kind.