HC Deb 02 May 1922 vol 153 cc1169-70
59. Mr. WISE

asked the Chancellor of the Exchequer the position of the British Cellulose Company; what is the total British Government loss; whether the Government has given away the 750,000 preference shares they held; who holds the present first and second debentures; and what is the amount, in sterling, of goodwill, patents, and patent rights in the new organization?

Mr. YOUNG

I would refer my hon. Friend to the exhaustive Report of the board of directors and to the chairman's speech delivered at the annual general meeting of the company held yesterday.

Mr. WISE

Were the Government consulted on this reorganisation?

Mr. YOUNG

Undoubtedly.

Lieut.-Colonel GUINNESS

In view of what has happened, will the Government now consider the selling of all other speculative investments which they now hold while they still retain some value in the market?

Mr. YOUNG

Without accepting the hon. and gallant Gentleman's description "speculative," the question of the policy of realising Government investments is always under review.

Sir F. BANBURY

Does the hon. Gentleman remember my advice only a short time ago with regard to the Anglo-Persian Oil shares?

Colonel WEDGWOOD

Would it not have been better to have sold these 750,000 shares for what they would fetch, even if for only 6d. a share, than to give them away?

Mr. YOUNG

The preference shares in question were of no realisable value when they were surrendered.

Mr. N. MACLEAN

Is it not true that two or three months ago the shares now given over to this company were valued at over £200,000 and that by selling them the Government would have made £200,000 on the 750,000 preference shares they have now handed over? Why is it that the Government are handing over properties that are supposed to belong to the Government without taking into consultation the Members of this House, as is done when they come to the House and ask Members to pay the calls for Anglo-Persian Oil Company shares?

Mr. YOUNG

With regard to the first part of the question, if the hon. Member has ever seen any such optimistic valuation as that mentioned for the securities I should be interested, but surprised, if he would call it to my attention.

Mr. MACLEAN

I will.

Mr. YOUNG

As to the second part of the question, it is far from being what is rather suggested in the question, the waste of a valuable asset. On the contrary, it was a necessary step in order to appreciate the remaining part of the Government's holding in this company.

Mr. KILEY

Is it not the case that the Government actually had mortgages and debentures on the stocks and assets of this company?

Lieut.-Colonel GUINNESS

Will the House have an opportunity of discussing the matter, and were the Government advised that they have power to give away these shares without any Parliamentary sanction?

Mr. YOUNG

There is no specific occasion on which such a matter as this—to the best of my knowledge at the moment—can come before the House for an ad hoc Vote. On the other hand, of course, it can be discussed on such general opportunities as arise on the salaries of those concerned.

Mr. MACLEAN rose

Mr. SPEAKER

We cannot now debate the matter.