HC Deb 31 May 1921 vol 142 cc837-8
73. Mr. WISE

asked the Minister of Agriculture what is the Value of the Kelham sugar factory what is the capital of the company; who holds the capital; and who holds the first debentures?

The MINISTER of AGRICULTURE (Sir Arthur Boscawen)

The value of the property of the Home-grown Sugar Company, including the factory, estate, farm stock, etc., as ascertained on 31st March last, is £447,659 0s. 10d. I will furnish my hon. Friend with the items in detail if he so desires. The authorised share capital of the company is £1,000,000. Shares to the amount of £500,000 have been issued, of which £498,415 15s. has been paid up. As regards the third part of the hon. Member's question, the list of shareholders comprises between 500 and 600 names. This list, together with other official records of the company, can be inspected at Somerset House. With regard to the last part of the question there are no first debentures. The company is, however, negotiating a first mortgage of £75,000 which it is proposed shall be secured on its property.

Sir FORTESCUE FLANNERY

Is the policy of the right hon. Gentleman's Department to promote the growth of sugar beet in this country?

Sir A. BOSCAWEN

I explained that matter fully on the Vote. I may say that the Government have taken 250,000 shares in this company, for the purpose of carrying out experiments on a first-rate standard.

Mr. WISE

When is a dividend expected on these ordinary shares?

Sir A. BOSCAWEN

The dividend will be paid half-yearly.

Lieut.-Colonel NALL

As the Government have guaranteed 5 per cent. for 10 years on the shares, is it not a fact that the money will have to be paid by the State out of the national Exchequer?

Sir A. BOSCAWEN

The Government have guaranteed 5 per cent. on the shares for 10 years.

Lieut.-Colonel NALL

Is it not a fact that the Government will have to pay that money?

Sir A. BOSCAWEN

Until the factory actually gets to work, I think that is the case, but I have every reason to believe that the company will be successful once it is started.

Mr. WISE

Is it possible for the Government to take the first charge, instead of the second charge?

Sir A. BOSCAWEN

This House has already agreed that the Government shall take the second charge.

Lieut.-Colonel NALL

Is the right hon. Gentleman aware that almost in the overwhelming opinion of the farming community of that district that estate will never be fit for sugar growing?

Sir A. BOSCAWEN

I think my hon. and gallant Friend should raise these questions on the Estimates.