HC Deb 29 July 1924 vol 176 cc1889-91
47. Mr. HARDIE

asked the Chancellor of the Exchequer whether he can give the total money received from the sale of property at Gretna; and whether any of the works plant has been sold?

The CHANCELLOR of the EXCHEQUER (Mr. Snowden)

The total of the sales resulting from the auction last week is £107,716. The only works plant sold was the ether factory.

Mr. HARDIE

Was not a promise given that a high reserve price would be put upon this property with a view to its being used for Government purposes, and may we know what that price was, and whether that price was stated to the auctioneer?

Mr. SNOWDEN

It is quite true that a reserve price was put upon this factory, as upon all other property which was put up for auction. The ether factory was not sold at the auction because the reserve price was not reached, but it was disposed of later for a sum which was only £250 below the reserve price. The reserve price was £20,000, and it was sold at £19,750.

Mr. HARDIE

May I ask who it was that fixed the reserve price at that low sum, on a plant costing £250,000?

Mr. SNOWDEN

I think the fact that nobody was prepared to buy for the purpose of carrying it on as a going concern showed that the reserve price was a fairly reasonable figure.

Mr. HANNON

What percentage does the amount of property sold bear to the total estimated value of the property?

Mr. SNOWDEN

I am quite sure my hon. Friend, with his wide and intimate knowledge of business, cannot expect me to answer an inquiry like that by question and answer. It would require a great deal of investigation.

Mr. HANNON

Did not the right hon. Gentleman's colleague in the Treasury state yesterday, in reply to a supplementary question of mine, that the value of the property sold was a small percentage of the total estimated value of the property?

Mr. SNOWDEN

If that is what the hon. Gentleman means, certainly. It is public knowledge that the Gretna factory cost an enormous sum of money, and it is quite impossible to realise anything like its original cost. But the hon. Member and other hon. Members should recognise that the factory was erected during war time and for war purposes, and that therefore the question as to cost was a very minor consideration at that time. I think I may add that, in point of fact, with the exception of the ether factory, everything that we get from the sale of property at Gretna is, in a sense, clear profit, because the entire cost of the equipment and buildings was saved by the reduced cost of munitions.

Mr. HARDIE

May I ask whether the Government in charge made every investigation as to the possibilities of the plant, and why did they not take the report which was given to them, and have it investigated, either by those in the Cabinet who understood, or by permanent officials who are supposed to understand?

Mr. SNOWDEN

I have not seen any such report as that to which my hon. Friend refers, but I may say that this question of Gretna has received not only my own personal attention, but the attention of other Departments of the Government during the last few months, and everything possible has been done to make the best of this sale. I think the results of the auction are very illuminating. Had there been possibilities for private enterprise, I think there would have been a great deal more competition than there was at the sale.

Mr. HARDIE

Does the right hon. Gentleman not see that private enterprise is playing the game?

Mr. SNOWDEN

As a matter of fact, the only works sold were the ether factory. All the other factories are still on our hands.