HC Deb 12 July 1920 vol 131 cc1958-9
38. Major BARNES

asked the Prime Minister what the profits of the Pacific Phosphates Company were for the three years preceding their purchase by the associated Governments; what was the market value of their shares on the date of the agreement to purchase; what was the authorised capital of the company; and if he will give the names of the directors?

The UNDER-SECRETARY of STATE of the COLONIES (Lieut.-Colonel Amery)

Owing to the, short notice given I am unable to supply the particulars asked for in the first two parts of the question, but I will ascertain them and communicate them to my hon. and gallant Friend. The authorised capital is £1,200,000. The names of the directors are Lord Balfour of Burleigh. Lord Southborough, Messrs. B. T. Balding, G. W. H. Bowen, A. R. Dickenson, G. W. Fox, W. R. Hay, A. N. Rickett, H. Voss.

Captain W. BENN

Do we understand that the Government fixed the purchase price without being in possession of particulars as to profits?

Lieut.-Colonel AMERY

No, Sir.

Mr. ORMSBY-GORE

Do we understand from the answer that the Government entered into an agreement with the Governments of Australia and New Zealand to purchase this company without going into the question of past profits?

Lieut.-Colonel AMERY

They certainly did go into the question, and that formed the basis of the price on which the company was to be taken over.

Sir J. D. REES

May I ask if it is a fatal ingredient in a deal that it should be profitable to British trade?

101. Mr. ORMSBY-GORE

asked the Under-Secretary of State for the Colonies what compensation, if any, is payable to the directors of the Pacific Phosphates Company under the purchase by the British, Australian, and New Zealand Governments by the Nauru Island agreement?

Lieut.-Colonel AMERY

The Governments are under no liability for such compensation. It is a matter for the Company to deal with.