§ 53 Mr. HOLMESasked the Chancellor of the Exchequer (1) what is the new essential industry which would have been liquidated if the Government had not agreed to take shares in the British Cellulose and Chemical Manufacturing Company, Limited; what article is made by that company which established firms are not already making or have made offer to the Government to make;
2020 (2) which Minister of the Crown will have to give his assent before debentures can be issued on the security of the assets of the new British Cellulose and Chemical Manufacturing (Parent) Company, Limited; and whether, in view of what has already occurred, he will undertake that no such consent will be given until Parliament has been consulted;
(3) what was the total of the debentures and the other charges on the British Cellulose and Chemical Manufacturing Company, Limited, held by the Government Departments and by private individuals on 1st January last; and what were the names of the Government Departments and the individuals, respectively, and the amounts held by them;
(4) if, having regard to the statement made by him that the standing of the British Cellulose and Chemical Manufacturing (Parent) Company, Limited, was not such that it could have raised the necessary funds to continue its undertaking if the liability to the Government had been paid off, he will state what are the reasons and calculations that convinced him that the interests of the Government and the taxpayers' money would be adequately protected by the acceptance of preference shares in place of debentures?
Mr. CHAMBERLAINThe industry is the manufacture of cellulose acetate for which the Company was formed during the War, and for which its works will be available to the Government in case of future necessity. I have no knowledge of the extent, if any, to which articles to be made by the Company during peace are now being made by other companies. The agreement with the Company provides that the consent of the Minister of Munitions must be obtained before debentures can be issued. I am not prepared to undertake that Parliament should be consulted before any such eon-sent is given. The answer to the first part of the third question is £2,270,000. Of this amount the Ministry of Munitions held £1,450,000 on their own behalf, £500,000 as trustee for the London County, Westminster and Parr's Bank, and £200,000 as trustee for the Chilworth Gunpowder Company. The remaining £120,000 were held by private persons, a list of whose names and holdings appeared in Appendix A of the Report of Lord Sumner's Committee, but I do not know 2021 whether there has been any variation in this list since the date of that Report. As regards the last question, what I stated was that experience had shown that the previous arrangement described in my reply to my hon. and learned Friend, the Member for East Grinstead, on the 2nd instant, made it impossible for the Company to raise the necessary funds to continue its undertaking. As I have already explained I am satisfied that it would not be in the interests of the Government or the taxpayer to force the Company into liquidation, and that the public interests are best protected by the arrangements now made.
Mr. HOOGGEMay I ask the right hon. Gentleman on what authority he tells this House he is not prepared to consult the House before investing one and a half millions of the country's money in this concern?
§ Mr. SPENCERWhat is the difference between investing in this company and investing a like amount, or a greater sum, in the mines of this country?