§ The powers of the Board of Trade under Section one of the Trading With the Enemy (Amendment) Act, 1916, are hereby extended so as to apply to any person, firm, or company when the business is carried on to any substantial extent either under the direction or control of or for the benefit of enemy subjects.—[Mr. Pennefather.]
§ Brought up, and read the first time.
§ Mr. PENNEFATHERI beg to move, "That the Clause be read a second time."
This proposal appears to me to be necessary on account of the adherent weakness of Clause 1 of the principal Act. As I read Clause 1, the Board of Trade can only make an Order where a business is carried on wholly or mainly for the benefit of or under the control of enemy subjects, and that means that the enemy interest or control must be over 50 per cent. If the enemy interest is only 49 per cent., then the Board of Trade have not power to make an Order under Clause 1, and it is in order to strengthen that power under Clause 1 that I make this proposal.
§ 3.0 P.M.
Sir A. STANLEYI greatly appreciate the suggestion made by the hon. Member who moved this Clause that additional power should be given to the Board of Trade, but I respectfully suggest to him that the powers which we now have under the principal Act are quite adequate to meet all the cases in which we desire to take action except those which are provided for in this new Bill. Take the particular instance mentioned by the hon. Member about concerns having 49 per cent. of their capital controlled by aliens and 51 per cent. by British subjects. The mere financial control in itself is not the determining factor, and there are other considerations which are taken into account in determining whether the business should be wound up or whether the interests owned by the enemy should be vested with the Public Trustee. There are instances where the enemy interest is considerably less, where we have taken power to vest that interest in the Public Trustee, and we may go further and wind up the business. How the business was conducted before the War is also a very important factor in deciding what course should be 2216 taken. While I am grateful to the hon. Member for his suggestion, I suggest that we have all the power that is necessary under the circumstances.
§ Mr. PENNEFATHERDo those remarks apply to all enemy controlled corporations also?
§ Mr. PENNEFATHERThen I understand there is ample power to deal with enemy controlled corporations, and that it is not necessary to give the Board of Trade extended powers?
Sir A. STANLEYExtended powers is a very wide term, but the determining words are "to any substantial extent." The Regulations in force up to the present have proved satisfactory in meeting all the cases which arise, and to alter the words now and substitute something else would require further definition. I trust the hon. Member will accept my assurance that the principal Act will meet all the cases.
§ Mr. PENNEFATHERI ask leave to withdraw my Motion.
§ Motion and Clause, by leave, withdrawn.