§ 52. Mr. WIGNALLasked the Chancellor of the Exchequer whether a subsidy was paid to the Cunard Company between the years 1881 and 1914 and, if so, what amount; whether, during the same period, loans were advanced by the Government to the Cunard Steamship Company and, if so, what amount; whether these loans have been repaid; and during what period did the repayment take place?
Mr. CHAMBERLAINBetween 1887 and 1907 certain payments, amounting ultimately to £22,500 per annum, were made by the Admiralty by way of subsidy to the Cunard Company. In addition subsidy payments have been made under the Cunard Agreement approved by the House on the 12th August, 1904, and under the Cunard Agreement Money Act, 1904, a loan of £2,600,000 for 20 years at 2¾ per cent. was advanced to the Company. Of this sum £1,560,000 has now been repaid.
§ Mr. W. THORNECan the right hon. Gentleman give any reason why these huge sums of money were issued to this company carrying such a small percentage?
Mr. CHAMBERLAINYes, because at the time that the Act was passed by this House the rates of interest for money were very much lower than they are now, and the conditions proposed appeared fair and commended themselves to the House of Commons.