HC Deb 07 July 1924 vol 175 cc1758-60
88. Mr. D. G. SOMERVILLE

asked the President of the Board of Trade whether any applications for assistance under the Trade Facilities Act have been made in connection with trade with Russia; if so, what they have been; and what action has been taken in respect of them?

The FINANCIAL SECRETARY to the TREASURY (Mr. William Graham)

Only two definite applications under the Trade Facilities Act have been received by the Trade Facilities Act Advisory Committee, one from Arcos, Limited, for a guarantee of £2,000,000 for tramp steamers which the Advisory Committee were unable to recommend; the other, from Centrosoyus (England), Limited, of £100, 000 for the purchase of agricultural machinery, is still under consideration. With regard to applications under the Export Credits Scheme, as my hon. Friend the Parliamentary Secretary to the Department of Overseas Trade stated in reply to the hon. and gallant Member for Central Hull on the 25th June, the question of the extension of the Export Credits Scheme to Russia is still under consideration by His Majesty's Government. I understand from my hon. Friend that in these circumstances no formal applications for credits for Russia have been submitted, but certain preliminary inquiries have been made at the Export Credits Department. In most of the cases the amounts concerned have not been stated.

Mr. SOMERVILLE

Can the hon. Gentleman say when the Government are likely to come to a decision about granting these credits to Russia?

Mr. GRAHAM

I could not say off-hand, because that part of the question is really one for the Department of Overseas Trade, but I should imagine no time will be lost.

Mr. MILLS

Are we to understand that an application for credits with a view to building ships to the value of £2,000,000 has been refused or turned down by the Advisory Committee, and, if so, do we understand that the Government accept that point of view?

Mr. GRAHAM

It is true that this guarantee has been refused, but the House will recollect that when the Bill was under consideration in the House Members in almost every part objected to shipping guarantees—

Mr. MAXTON

No one in this party.

Mr. GRAHAM

—on the ground that there were 5,000,000 or 6,000,000 tons of shipping lying up. I should imagine that is the reason for the decision of the Advisory Committee.

Colonel GRETTON

Were either of the companies which applied for credits overseas British companies or Russian companies under the control of the Russian Government?

Mr. GRAHAM

I understand that the two companies mentioned are Arcos, Limited, and Centrosoyus (England), Limited, Of course, that is under the Trade Facilities Act, and I think the hon. and gallant Member referred to export credits, a matter which is, of course, under a different Department.

Mr. WALLHEAD

Is it not a fact that if these ships for which credits are refused are not built in this country, they will be built abroad?

Mr. SOMERVILLE

Is it not a fact that British companies do not want to trade with Russia, in view of the fact that they cannot be sure of getting their money?

Sir A. STEEL-MAITLAND

With regard to the two companies for which credits were applied for under the Trade Facilities Act, to which the right hon. Gentleman referred, namely, Arcos, Limited, and Centrosoyus (England), Limited, are they foreign or British registered companies; and, if they are British, does he know whether they are controlled by British nationals or by foreign nationals?

Mr. GRAHAM

I could not possibly give an answer regarding the registration, but if the hon. Member will put a question down on this subject, I will reply to it.

Mr. MAXTON

Are we to understand, from the reply of the Financial Secretary, that, because in a Debate in this House certain Members interested in shipping alleged that there was an oversupply of shipping, the shipping industry in this country is to remain stagnant until such time as that oversupply is exhausted?

Mr. GRAHAM

No; the point is rather this, that, obviously, in a scheme of this kind, it would be a manifest injustice to the taxpayers of this country to guarantee anything which could not be remuneratively employed, and the fact is that, so far from having failed to assist shipping, we have given £13,000,000 of guarantees to British shipping. Beyond that I think it would be rather difficult to go.