§ 49. Mr. C. WHITEasked the Prime Minister if he will state what is the financial position of the Home Produced Sugar Company, Limited, in relation to the Government; what is the capital of the said company; whether any part of such capital is found by the Government; whether any of the directors of the company are Members of Parliament; if so, what are their names, and what yearly fee or salary is paid to each; whether the Government have any voice in the appointment of such Members as directors; and whether the Government pay the whole or part of such directors' salaries?
The PARLIAMENTARY SECRETARY to the MINISTRY of AGRICULTURE (Sir Arthur Boscawen)The company known as Home Grown Sugar, Ltd., to which the hon. Member presumably refers, was registered on the 13th February, 1920, with a nominal capital of £1,000,000, divided into 1,000,000 ordinary shares of each. The Government agreed to subscribe for a number of ordinary shares (not exceeding 250,000), equivalent to the number allotted to public subscribers. The total number of shares issued by the company is 500,000, of which 250,000 have been allotted to the Government. No shares have been allotted otherwise than for cash. The 217 Government have guaranteed a dividend of 5 per cent. per annum upon the capital subscribed by the public up to 250,000 shares for the period ending 31st March, 1930. The directors may at any time after repayment to the Minister of Agriculture of any sum paid to the company under the guarantee call upon the Minister to sell his shares upon payment of their par value, together with a deferred dividend of 5 per cent. upon such shares as from the date of allotment.
Three of the directors of the company are Members of Parliament, namely, the hon. and gallant Member for the Ludlow Division of Salop; the hon. and gallant Member for the Rye Division of Sussex; and the right hon. Member for Norwich.
The remuneration of the directors, other than the managing directors, is at the rate of £300 per annum for each director, and an additional sum of £100 per annum is paid to the chairman for the time being of the board of directors. The Government have no voice in the appointment of Members of Parliament as directors. The Minister of Agriculture is, however, entitled to appoint a director of the company to act as the Government's financial representative, and such financial representative has been appointed. The directors' fees are paid by the company, but the fees of the financial representative are paid over to the Ministry, and the financial representative is paid an equivalent amount by the Ministry in place of receiving his remuneration direct from the company.