§ 50. Mr. HURDasked the Prime Minister what is the total capital employed in the coal industry, whether as ordinary or preference capital or debentures issued; what was the approximate amount of undistributed reserves of profits employed as capital in the industry; what was the average annual percentage of profit earned and dividends paid for the five years both before and during control of the industry; and, if this information is not available, will the Government take steps to obtain it?
§ The SECRETARY for MINES (Mr. Bridgeman)I have been asked to reply. I would invite my hon. Friend's attention to the evidence given on this subject before the Coal Industry Commission by Sir Josiah Stamp (pages 35 and 36, Vol. 1) and Sir Ernest Clarke (pages 408 and 409, Vol. 1). On this basis of the figures given by Sir Ernest Clarke (but excluding coke ovens and by product plant), it may be estimated that the total capital now employed in the coal mining industry is approximately £180,000,000, exclusive of the new money brought into the industry during the last 12 months. It is impossible to give the share capital of the industry or its allocation between ordinary and preference shares and debentures. On the same basis the percentage of profits earned (before deduction of profits carried to reserve and capitalised) the capital may be estimated as follows:—
It is impossible to state how much of the capital consists of undistributed reserves of profits, but during the seven years ended 31st March, 1921, it is estimated that £40,000,000 was appropriated from profits to capital in this way, leaving available for dividends, partners' drawings and Income Tax a sum of profits representing a possible yield of 11¾ per cent. on the average capital employed.
Per cent. Average of five years ended 31st March, 1914 9.8 Average of three years ended 31st March, 1917 17.0 Average of four years ended 31st March, 1921 15.5