§ 15. Major MACKENZIE WOODasked the Secretary of State for War whether his attention has been drawn to a statement by Sir Alexander Prince, late Controller of the Expeditionary Force canteens, that £7,000,000, and not £2,000,000, as stated by the War Office, was paid back to troops in the shape of rebates from the Expeditionary Force canteen profits, and to the further statement by the auditors that the War Office were in error in alleging that the final balance-sheet rendered by the Expeditionary Force canteen contained no provision for losses anticipated on the realisation of the unsold stock; which of the conflicting statements is correct; and whether he will be able to make a full statement with regard to the disposal of the Expeditionary Force canteen profits?
§ Sir A. WILLIAMSON (Parliamentary Secretary, War Office)My attention has been drawn to the statements to which the hon. and gallant Member refers. The sum of £7,000,000, I am informed, included discounts and rebates granted by the Expeditionary Force Canteens and Navy and Army Canteen Board, amounting to about £2,000,000 and £5,000,000 respectively. Perhaps I may be permitted to state that the Finance Department of the War Office has nothing to do with the finance of the two canteen organisations. When the closing of the business of the Expeditionary Force canteens was undertaken by the Navy and Army Canteen Board, the terms of the arrangement, approved by the Army Council, provided that a reserve should be made by Expeditionary Force canteens to reimburse the Navy and Army Canteen Board should the winding up of the former's undertaking involve a loss. The 730 Expeditionary Force canteens, in presenting their interim report, stated that no such provision had been made in the accounts. As I am informed that these losses will be considerable, publication of accounts until final results are ascertained would be misleading. Nevertheless, there is every reason to believe that the excellent work done by the two canteen organisations during the War will result in a very substantial credit balance. The amount to be finally handed over can only be ascertained when the liquidation of the Expeditionary Force canteens is completed, and the surplus stocks still held by the Navy, Army and Air Force Institutes have been realised. The amount already handed over to the United Services Fund on account is about £3,049,000 in cash and £1,000,000 of Funding Loan. In view of the interest of the United Services Fund, the Dominions, India, Navy, Army and Air Force in the final apportionment of these moneys, my right hon. Friend the Secretary of State has decided to appoint a small and entirely independent Committee, under the Chairmanship of the hon. Member for the Ecclesall Division of Sheffield (Sir Samuel Roberts), to consider and advise him upon the subject generally.
§ Major WOODWas not the balance sheet presented by the auditor certified as a final balance sheet, and why is it described now as an interim balance sheet?
§ Sir A. WILLIAMSONThere was no proper certificate for the accounts. There was no ordinary and usual certificate such as is the custom with accounts. The accountants themselves made the accounts. There was no independent audit.
§ Major WOODThe auditors to whom I have directed attention in my question say they presented a final balance sheet and made full provision for the depreciation in the stock.
§ Sir A. WILLIAMSONI am informed that they made full provision for depreciation of stock which they retained to realise, but not for the stock which they handed over to the Navy and Army Canteen Board to realise.
§ Major WOODWill the right hon. Gentleman publish the balance sheet that has been presented?
§ Sir A. WILLIAMSONThe Committee will have the whole of these matters put before them, and when we have received their Report we will consider that.
§ Major WOODMeanwhile will no money be disbursed?
§ Sir A. WILLIAMSONI cannot promise that, because the United Services Fund is constantly making application for money for the various schemes which it has in hand, and it would be unwise and unreasonable to retain money belonging to the United Services Fund if it is not necessary to do so.
§ Sir D. MACLEANIn view of the very large amount of publicity which has been given to this matter in the Press, will my right hon. Friend undertake that this Committee shall be set up immediately; and am I right in assuming that it will have full power to send for persons and documents in the usual way, and that at the earliest possible moment complete publicity will be given to the whole of this matter so that the public may know and the large amount of misunderstanding and misrepresentation may be finally dispelled?
§ Sir A. WILLIAMSONThe whole object in appointing this entirely independent body, which does not represent either the War Office or the United Services Fund, was that they might give an unbiassed account of the position, and guide the War Office in the distribution of these moneys.