HC Deb 18 March 1920 vol 126 cc2380-1
60. Lieut.-Colonel Sir JOHN HOPE

asked the Prime Minister whether, in view of the recent decision to sell all surplus aeroplanes to a private company for a fixed sum and half profits on resale, it is the intention of the Government to dispose of all other surplus war stores on a similar principle, and so terminate the cost of the Ministry of Munitions at an early date?

Mr. KELLAWAY

I have been asked to reply. The conditions of the sale referred to were exceptional in that there is not, for surplus aeroplanes, either the demand or the established market value which obtain in respect of most of the other commodities which the Ministry has to sell. It would not be in the interests of the Exchequer to apply generally to stores to which these conditions do not apply the methods and terms of disposal adopted in the sale in question.

Mr. BILLING

Can the hon. Gentleman say whether the question of half profits is to be based on the difference of price paid for the aeroplanes and the price at which they were sold, or the price of sale less the expenses of this private firm? If so, what steps does he propose to take to overlook the expenses of the firm?

Sir J. HOPE

Does the hon. Gentleman consider that half profits will amount to more than the £27,000,000 that the Ministry of Munitions is costing the country each year?

Mr. KELLAWAY

It would be a very unfair test to take the whole expenses of the Ministry and apply it to one single question. In reply to the hon. Member (Mr. Billing) I may say that the Disposals Board will have the books and contracts before them.

Mr. BILLING

Will the company be allowed their expenses from the prices paid before there is any further payment to the Government?

Mr. KELLAWAY

Of course, as to expenses, the Disposals Board will have the accounts before them.

Sir J. HOPE

For what purpose does the Ministry now exist except for the sale of surplus stores?

Mr. KELLAWAY

The assets of stores amount to £180,000,000. The receipts average now between £4,000,000 and £5,000,000 per week, and it is unfair to refer to one particular transaction the whole of the expense in connection with those gigantic amounts.