§ 53. Commander BELLAIRSasked the Prime Minister whether he is aware that the Anglo-Persian Oil Company ordered seven tank steamers before the end of the last financial year 1914–15, and that these steamers will cost over a million sterling and take two years to build; and, in view of the pledge given by the then First Lord of the Admiralty, on 7th July, 1914, that the £2,200,000 authorised by Parliament would be exclusively employed in developing the oil-field in Persia, whether he can state the circumstances under which this expenditure has been authorised on steamers without Parliament being informed, seeing that the Anglo-Persian Oil Company has no other funds?
§ Dr. MACNAMARAI would refer the hon. and gallant Member to the statement made by the late First Lord of the Admiralty on 15th June, 1914, in reply to a question by the hon. Member for Brentford In that reply the general heads of expenditure intended to be covered by the Government participation in the share capital of the Anglo-Persian Oil Company were explained. The portion of the contemplated expenditure by the company on tank vessels, which will be defrayed out of Government shares, has reference to the special type of vessels designed mainly for the transport of oil to suitable deep-water loading berths. The balance of the expenditure on tank vessels will be financed by the company otherwise than from the Government capital. The company is, of course, entitled to own and employ tank vessels to whatever extent may be commercially necessary and profitable. I am informed that the aggregate expenditure on both descriptions of tank vessels will fall far short of the figure named in the question, the contract having been placed on far more favourable terms than the hon. and gallant Member has evidently assumed.
§ Commander BELLAIRSIs it not the case that whatever way the company raise money by mortgage or otherwise the interest, loss and depreciation will have to fall on the Admiralty contribution? Was not an absolute pledge given that the 2282 expenditure would be confined to developing the oil-field in Persia, and for such tank steamers as were required the Admiralty would own or charter them?
§ Dr. MACNAMARAThe hon. Member is confusing two things. The pledge referred to was that given in reply to the hon. and gallant Member for Melton, who desired an assurance that the money voted by Parliament should be spent solely on the Persian oil field and not in any other part of the world. The company were free to buy and own tank steamers.
§ Commander BELLAIRSAs this matter involves quotation from the Parliamentary Debates, I beg to give notice that I will endeavour to call attention to it on the Adjournment.