§ 75. Mr. JOHNSTON (forasked the Chancellor of the Exchequer for what purpose the British Italian Corporation received a subsidy from the British Government; whether he can state the original sum proposed and the actual sum paid to the corporation; whether any agreement was entered into between the Government and the corporation; and whether a copy of the agreement will be circulated or placed in the Library of the House?
Mr. GUINNESSAs the answer is a long one, I will, with the Hon. Member's permission, circulate it in the OFFICAL REPORT
§ Following is the answer:
The Public Accounts Committee, in their Report of 1923, state thatThe British Italian Corporation was formed in 1916, as a war measure, with the object of freeing from influences which had hitherto predominated as large a proportion as possible of the vital economic potentialities of Italy.By an agreement dated 8th June, 1916, His Majesty's Government undertook on certain conditions to pay to the Corporation a subsidy not exceeding £0,000 per annum for 10 years. This arrangement obtained statutory sanction by Section 1, Subsection (3) of the Government War Obligations Act, 1916. In March, 1921, proposals were made by the British Italian Corporation for determining their agreement with the Government, and after considerable negotiation a settlement was effected on the basis that the Government should pay to the Corporation the subsidies due under the original agreement for the six years ending 30th November, 1921, but should be relieved from any liability to pay the four remaining subsidies. The total sum paid by way of subsidy to the Corporation in respect of these six years amounted to £.283,418. In addition, under arrangements made in 1917, the Corporation was relieved of the payment of any Income TaxorExcess Profits Duty for which they might be liable in consequence of the receipt of the subsidies
§ As regards the last part of the question, the various agreements connected with this transaction are printed together with a memorandum by the Board of Trade in the Appendices to the Reports of the Public Accounts Committee for 1923 (House of Commons Paper 125 of 1923, pages 562572), and I see no reason for incurring the expenditure of a. further presentation to this House