§ 5. Lieut.-Commander ASTBURYasked the President of the Board of Trade if the Dyestuffs Development Committee, constituted under Section 6, Article 2, of the Dyestuffs Import Regulation Act, was consulted before the decision was taken in respect of the surrender by the Government of its right to veto and control the actions of the British Dye-stuffs Corporation?
§ Sir P. CUNLIFFE-LISTERNo, Sir, but His Majesty's Government were satisfied, before coming to a decision on the matter in question, that they were fully apprised of the views of the various interests represented on the Committee.
§ Lieut.-Commander ASTBURYDoes my right hon. Friend think it is fair or wise to come to this decision without consulting this Committee?
§ Sir P. CUNLIFFE-LISTERYes, Sir. The Government, upon whom the responsibility rests, investigated the whole matter extremely closely, and satisfied themselves that they took into consideration all the relevant facts.
§ Mr. HURSTIs not the Dyestuffs Corporation absolutely free to give up dye manufacturing and simply do the work of distributing German dyestuffs?
§ Sir P. CUNLIFFE-LISTERI have an answer on this point in regard to another question, but if the hon. and learned Member refers to the statement of the chairman, made at the general meeting, he will see that nothing is further from their intention.
§ 6. Mr. BETHELasked the President of the Board of Trade why the Government has surrendered to the British Dyestuffs Corporation capital of the nominal value of £1,100,000; and whether he is aware that this sum relieves the corporation of all depreciation and thereby prejudices the interests of the other competing dye-making companies and firms in the country?
§ Sir P. CUNLIFFE-LISTER; I regret that I am unable to accept the premise advanced by my hon. Friend, or the conclusion which he draws from it.
§ Lieut.-Commander ASTBURYDoes my right hon. Friend think it is fair that the whole of the depreciation of the British Dyestuffs Corporation should be wiped out, and that these firms, by this action, should practically be closed down?
§ Sir P. CUNLIFFE-LISTERI think it is eminently desirable that any company should write down its capital to a figure which corresponds to the actual position of the business.
§ Lieut.-Commander ASTBURY; The outside firms have no chance of doing that, and it, is only owing to this gift of £1,100,000 by the Government to the Dyestuffs Corporation that this is possible.
§ Mr. HARDIEWas not the money called Government money to be used for 223 research purposes and are not the companies now taking over that research work free whereas other companies have to pay for their own research work?
§ Mr. BETHELWill the right hon. Gentleman receive a deputation?
§ Sir P. CUNLIFFE-LISTERI think every company engages in. research work.
§ Mr. HARDIEBut these companies are getting Government money and the others are not.
§ Mr. MACKINDERIs the right hon. Gentleman prepared to receive a deputation on this matter?
§ Mr. BETHELThat is my question.
§ Sir P. CUNLIFFE-LISTERAt the proper time the action of the Government can be challenged, and they will reply.
§ Mr. MACKINDERWill it be possible to challenge this action after the transaction has been completed or before?
§ Sir P. CUNLIFFE - LISTERI answered that question a fortnight ago in the House when I stated that there would be an end to all administrative responsibility if the Government was not entitled to carry on this administrative business.
§ Mr. BETHELI will raise the matter on the motion for the adjournment of the House.
§ 11. Mr. HURSTasked the President of the Board of Trade whether, having regard to the intended amalgamation of interests between the British Dyestuffs Corporation and the German Interessen Gemeinschaft, it is his intention to introduce a Bill to repeal the Dyestuffs (Import Regulation) Act?
§ Sir P. CUNLIFFE-LISTERI am not aware of any such scheme of amalgamation as my hon. Friend suggests. In this connection, I would ask my hon. Friend to refer to the assurance given in Lord Ashfield's speech at the general meeting of the shareholders of the British Dyestuffs Corporation, both as regards the future manufacture of dyes and the interests of the colour users. The answer to the second part of the question is in the negative.
§ Lieut.-Commander ASTBURYIs the right hon. Gentleman aware that Lord Ashfield stated in Manchester that this pact between the Interessen Gemeinschaft in Germany might come in, and, if that is the case, does he not see that the British Dyestuffs Corporation will simply become agents for this German firm? Will he make inquiries to see whether the research chemists of the British Dyestuffs Corporation are being discharged?
§ Sir P. CUNLIFFE-LISTERMy answer deals with both those points, but the hon. and gallant Gentleman will see from what Lord Ashfield said at the general meeting that he is wrong in both those respects.
§ Mr. WEBBHas the transaction to which reference has been made between the Government and this corporation actually been completed, or is it still under discussion?
§ Sir P. CUNLIFFE-LISTERNo. The Government have made a firm offer and it was put before the shareholders and it has been accepted by them at the extraordinary general meeting subject to confirmation at the adjourned general meeting.
§ Mr. WEBBDo I understand that it is not within the power of this House to express any useful opinion on the action of the Government?
Sir P. CUNLIFFE LISTERAs I said when this matter was first raised the Government have taken, by administrative action, what they consider to be the right and proper steps, and it will be open on the proper occasion for the right hon. Gentleman to criticise the administrative action of the Government.
§ Colonel DAYWhen will it be open to us?
§ Mr. MACKINDERWhat is the relation of the market value of the shares to the amount of money which the Government have received for those shares?
§ Mr. SPEAKERThat does not arise.
§ 12. Mr. HURSTasked the President of the Board of Trade what is the total cum of money paid or payable down to date by the Government to the British Dye-stuffs Corporation by way of commission on the sales of reparation dyes?
§ Sir P. CUNLIFFE-LISTERThe amount paid or payable to the British Dyestuffs Corporation, Limited, for commission on sales of reparation dyestuffs to the end of October, 1925, is £81,800.
§ Mr. HURSTWill the right hon. Gentleman consider the advisability of appointing a Select Committee to inquire into this disastrous adventure in State interference?
§ Sir P. CUNLIFFE-LISTERNo, Sir. The Government consider it most desirable that they should cease to be a shareholder in this company and should be in the same position, vis-a-vis all dye making companies, and for that reason it was our view that it is undesirable that the Government should be directly associated with any one of them.
§ Mr. BASIL PETODoes he not think that the whole history of this unfortunate affair should be a warning to the Government not to engage in State trading?
§ Colonel DAYWhen will the House have an opportunity of discussing this matter?
§ Sir P. CUNLIFFE-LISTERI cannot answer that question without notice. I think it is a question which should be addressed either to the Prime Minister or to the Parliamentary Secretary to the Treasury.
§ Colonel DAYY: May we have an answer? [HON. MEMBERS: "Answer!"]
§ Lieut. - Commander KENWORTHYAt end of questions.