HC Deb 03 July 1919 vol 117 cc1161-2
65. Major BARNES

asked the Chancellor of the Exchequer what obligations hare been incurred in respect of the maintenance or assistance of flax production; what guarantees have been given in connection therewith: and if he will say to whom the obligations have been incurred and the guarantees given in each case, and the amounts involved in each separate case?

Mr. BRIDGEMAN

I have been asked to reply to this question, but as the reply is a lengthy one I propose to circulate it in the OFFICIAL REPORT.

The following is the list referred to:

1. The Board of Trade have undertaken to purchase from Irish farmers the unsold balance of the 1918 flax crop in Ireland. The purchase will be made at the prices fixed by the Flax (Irish Crop) Order, 1918, and the Rescutched Tow No. 2 Order, 1918, and it is estimated that the purchase price will not exceed £500,000.

2. The Board of Trade have under taken to purchase from Irish farmers the 1919 flax crop in Ireland. The purchase will be made at the prices fixed by the Flax (Irish Crop) Order, 1919, and it is estimated that the purchase price, which is totally dependent on the amount and quality of the crop, will not exceed £5,000,000.

3. The Board of Agriculture have contracted with farmers in Great Britain for the production of approximately 13,000 acres of flax in 1919. A reliable estimate of the purchase price of the crop is not yet available.

4. The War Department entered into a guarantee of financial co-operation with the Flax Society, Limited, in respect of flax production in 193 8 and incurred a, liability of £300,000. The crop produced under the guarantee has not yet been realised for account of the guarantors.

5. The Board of Trade have renewed the above guarantee on a reduced scale in respect of flax production in 1919; the nominal liability under the guarantee is limited to £200,000, but it is estimated that not more than £50,000 will be called for.

6. Following the successful seed production operations conducted in 1918 by the War Department in Canada, the Board of Trade have contracted with Canadian farmers, through the same firm in Winnipeg, on a reduced scale for the production of 20,000 acres of fibre sowing seed at a purchase price estimated not to exceed £120,000.