HC Deb 23 November 1925 vol 188 cc915-6
73. Mr. A. V. ALEXANDER

asked the Minister of Agriculture whether he will state, in the balance sheets of certain beet-sugar corporations, published as White Paper No. 163 on 5th August, 1925, what is the nature of the contingent liability listed in the liabilities of Home-Grown Sugar, Ltd., and why this item of contingent liability is included in the general liabilities while liability to the Minister of Agriculture is only noted as being contingent liability; what amount of Government subsidy on production was included in the profit-and-loss account of each of the three companies whose balance sheets are published; and, in the cases of Home-Grown Sugar, Ltd., and the English Beet-Sugar Corporation, Ltd., whether the valuation of stocks is based upon market price or cost price?

Sir H. BARNSTON

As the reply is rather long, I propose, with the hon. Member's permission, to circulate it in the OFFICIAL REPORT.

Following is the reply:

  1. (1) The contingent liability included in the liabilities of Home Grown Sugar, Ltd., is an unpaid account for goods purchased and is therefore a charge against the company's assets. It is described as a contingent liability as its payment is contingent upon the company failing to establish a counter-claim for an amount which would wholly or in part cancel the obligation.
  2. (2) The liability to the Government described as "contingent" in a note to the balance sheet, but not included among the liabilities is one which is payable only out of future profits if and when earned. It is, therefore, not a charge against the present assets of the company.
  3. (3) It is the custom of the beet-sugar companies to value all their stocks at cost, unless the actual value on the date of the balance sheet is lower, in which case the lower figure is taken.
  4. (4) The Act does not provide for the laying before Parliament of the particulars of the statement of profit and loss of the beet-sugar companies, but the following is the gross subsidy included by these companies in respect of sugar and molasses produced last season: —

£ s. d.
Kelham factory … … 134,471 12 11
Cantley factory … … 292,086 8 2
Colwick factory … … 77,623 0 4