§ 2. Lieut.-Commander KENWORTHYasked the President of the Board of Trade why the factory of Home-grown 1804 Sugar, Limited, was mortgaged before being completed; why only 2,300 acres was placed under contract with the farmers instead of the full 6,000 originally intended; why only 200 acres of beet have been cultivated at the factory's own estate and many other offers from farmers refused; and whether, in view of the fact that the factory works only 50 days in the year, the company has ever considered a means for utilising the plant after the working season is over?
The MINISTER of AGRICULTURE (Sir A. Boscawen)I have been asked to reply. The factory was mortgaged owing to the very considerably increased cost of construction attributable to the rise in the cost of labour and materials. With regard to the second and third parts of the question, the company's experts considered it inadvisable, with new machinery and inexperienced labour, to accept more than 20,000 to 25,000 tons of raw material during the first year, and distribution of contracts to farmers was effected as fairly as possible having regard to the reduced supplies of raw materials required. With a full supply of beet the factory would not be continuously in operation for more than three months, but in addition time is required for preparations for handling the crop and overhauling the machinery afterwards. With regard to the remainder of the year, the directors are considering how they can best utilise the plant without impairing the efficiency of the factory for sugar production.
§ Lieut.-Commander KENWORTHYIs it intended to continue this experiment in view of the poor results obtained?
Sir A. BOSCAWENUp to date there has been no result, because the experiment has not yet been started.
§ Lieut.-Commander KENWORTHYIf the factory was mortgaged before they even started operations, is not that a very poor look-out for the success of the business?
Sir A. BOSCAWENNot at all. As I have pointed out, the mortgage is due to the fact that the cost of construction is very much larger than was estimated.
§ Mr. KILEYIs it the policy of the Government, whenever they invest State money in industrial concerns, to permit mortgages to be raised on the property?