HC Deb 04 July 1918 vol 107 cc1861-2
Mr. LEIF JONES (by Private Notice)

asked the Financial Secretary to the War Office whether, in view of his statement that the War Office, with the consent of the Treasury, are guaranteeing the bank against loss in connection with any advances they may make under the Flax Companies (Financial Assistance) Bill, it is intended to embody in the Bill the terms Of the guarantee, and whether, as this guarantee imposes upon the people a contingent liability, it is intended to pass a Financial Resolution in Committee of Ways and Means sanctioning this charge upon the people?

Mr. FORSTER

No, Sir; the Bill in question refers only to the guarantee given by the companies and corporations. The liability undertaken by the Government will be covered by another Bill, which will be founded on a Resolution passed in Committee of Ways and Means.

Mr. JONES

Does my right hon. Friend realise that the title of the Bill is misleading, because it is to enable companies and other bodies to give financial assistance to flax companies, and that there is nothing to show that financial responsibility for advances to the flax companies will rest upon the Exchequer?

Mr. FORSTER

It is a self-contained part of the scheme. The scheme is divided into two parts—the part undertaken by the Government, and the part undertaken by the companies and corporations—and the contingent liability incurred by the Government will be dealt with in a separate Bill.

Mr. JONES

May we rely upon it that this guarantee will not be made binding until this House passes a Bill for the purpose founded on a Resolution in Committee of Ways and Means?

Mr. FORSTER

It will be founded on a Financial Resolution in Committee of Ways and Means.

Mr. HOLT

Am I to understand from the right hon. Gentleman that the Vote of Credit will not be used for the Government guarantee?

Mr. FORSTER

The actual moneys that are payable will probably come out of the Exchequer, but the authority of this House will be given to the transaction by means of a Bill founded on a financial resolution.