§ 3. Sir JOHN BUTCHERasked the President of the Board of Trade why a commission of 2½ per cent., on the moneys recovered by British subjects from former enemy debtors, is charged by the Enemy Debt Department against such British subjects; what was the total amount of such commissions received by the Enemy Debt Department in each of the years 1921 and 1922; and how such sums were applied?
§ Sir P. LLOYD-GREAMEThe commission referred to is charged, under the Treaty of Peace Order, to defray the expenses of the Clearing Office (Germany) and indemnify His Majesty's Government against loss arising from any failure to collect debts owing by British nationals whose solvency is guaranteed by it under the Treaty. The total commission during the year ending 31st March, 1921, was £432,763 14s. 10d.; during the year ending 31st March, 1922, £402,277 12s. 4d.; and during the year ending 31st March, 1923, £183,228 9s. The matter is 1145 fully dealt with in the First Report of the Controller of the Clearing Office, a copy of which I am sending my hon. and learned Friend.
§ Mr. HARRISHow long is this Department likely to go on? Is it not time it should be wound up and the staff released for other work?
§ Sir P. LLOYD-GREAMENo, Sir, it would be most unfortunate to wind up the Department before we have succeeded in getting payment of the money due to British Nationals.
§ Sir J. BUTCHERWhy do we not thrust on the debtor—who is the German—the cost of collecting the money due to British subjects? Why should British subjects pay the cost of collecting their own debts?
§ Sir P. LLOYD-GREAMEI must refer the hon. and learned Member to the Peace Treaty.
§ Sir J. BUTCHERHas this large sum of £300,000 or £400,000 resulted in a profit to someone or some Department? How is it dealt with?
§ Sir P. LLOYD-GREAMEIt has gone to pay the expenses of the Department, which is self-supporting. Whatever balance there is goes into a Suspense Account against any bad debts. The hon. and learned Gentleman will remember the British Government has guaranteed the debts of their own Nationals.
§ Sir J. BUTCHERThen does the person who has good debts have to contribute to those who have bad debts and do not get paid?
§ Mr. A. M. SAMUELIs it not the fact that the British Crown have recovered between twenty and thirty million pounds in debts, and are the creditors not very pleased to pay this 2½ per cent. in return for getting their money?
§ Sir P. LLOYD-GREAMEI think that is so. One of the most satisfactory things in the Peace Treaty is the way in which we have been able to get payment of these debts. I am sure the hon. and learned Member for York (Sir J. Butcher) will appreciate that it would be quite impossible to reopen the whole arrangements of the Peace Treaty. This is one that is working well.