§ 56. Mr. CONNOLLYasked the Financial Secretary to the Treasury whether the sale and transfer of the Newfoundland Paper Mills to an American company has been completed; whether there has been any loss to the Treasury by the provisions of the guarantee under the Trades Facilities Act; and whether there are any outstanding commitments to the Treasury under the deed of transfer?
Mr. SAMUELThe sale of the assets of the Newfoundland Power and Paper Company, Limited, to the International Power and Paper Company of Newfoundland, Limited, which is a company registered in Newfoundland, has been completed. No loss has been incurred under the guarantee in this case. The Treasury guarantee continues in respect of the Guaranteed Debenture Stock. In accordance with the original arrangements this 1686 will be repaid between 1933 and 1948. The Treasury will receive Debenture Stock of the new company corresponding to any payments made under the guarantee to the debenture holders. This stock will be repayable at a premium of 5 per cent. over the years 1948 to 1973.
§ Mr. MACLEANCan the hon. Member inform the House whether before this sale was effected the Treasury were taken into consultation by the company?
Mr. SAMUELI cannot say when the Treasury were taken into consultation, but I do remember the matter referred to in my reply coming before me, and I gave a good deal of consideration to it.
§ Mr. MACLEANAre we to consider it part of the policy of the Treasury that companies which have received assistance under the Trade Facilities Act can sell their business without placing the whole of their circumstances before the Treasury?
§ Colonel WEDGWOODMay I ask whether the Treasury is represented on the Board of the new company?
§ Mr. WALLHEADCan the hon. Member tell us what profit the Newfoundland Paper Company made out of this deal?
§ Lieut.- Commander KENWORTHYAre not the Treasury interested in the case of a British company subsidised by the Treasury which sells out at a profit to an American company? Is not the Treasury interested?
§ Mr. RADFORDIs it not the case that where these guarantees are given debentures are issued and, therefore, without the consent of the debenture holders, a good title cannot be given to the buyers?
§ Lieut.- Commander KENWORTHYSeeing that a large amount of Government money is involved, cannot we have a reply from the Treasury?
Mr. SAMUELAll these are highly technical questions, and I do not want to mislead the House by replying to them across the Floor without notice.
§ Mr. MACLEANSince the Government had to come to this House in order to have this money voted, cannot the hon. Gentleman give the House more information as to the way in which the money invested in this company is being thrown away to an American company? Surely we are entitled to some reply.