85. Sir F. HALLasked the President of the Board of Trade whether the Government has surrendered its interest in the British Dyestuffs Corporation; if so, upon what terms; and what steps will be taken to ensure that this country shall not in future find itself handicapped, as was the case during the Great War, owing to its dependence upon foreign countries for the supply of aniline dyes?
§ The PRESIDENT of the BOARD of TRADE (Sir Philip Cunliffe-Lister)His Majesty's Government have indicated to the directors of the British Dyestuffs Corporation their willingness to dispose of their shares in the corporation for the sum of £600,000, and to terminate their existing rights of veto and control on the conditions that the corporation enters into an agreement that no more than 25 per cent. of its shares shall be held by foreigners, and that the corporation will in all matters of technical information and research keep in touch with the Government in such manner as the President of the Board of Trade for the time being may direct. These arrangements, if approved by the shareholders, will give the corporation the same freedom in the conduct of its undertaking as is enjoyed by the other dye-making companies in this country. The course taken is one which the Government believe, after full consideration, to be in the best interests not merely of the particular company, but of the dye-making industry in this 924 country as a whole. I may add, with regard to the last part of the question, that the Government have no intention of modifying the Dyestuffs (Import Regulation) Act.
§ Mr. RAMSAY MacDONALDIs this change going to take place without any opportunity being given to this House to express its views, and is this to be done without any papers explaining the whole-situation being communicated to the House?
§ Sir P. CUNLIFFE-LISTERI do not think that any undertaking was ever given by the Government, at any time, that we would not deal with the Government holding in this matter. Other companies were disposed of without previous discussion in this House, but of course if the right hon. Gentleman desires to discuss this matter on some future occasion he will have an appropriate opportunity for discussing any action which the Government may have taken.
§ Mr. MacDONALDMay I ask what papers are we to receive, papers showing the whole of the transactions and the negotiations that have taken place between this company and the Government and the representations that have been made by the Government regarding foreign arrangements, that override British production?
§ Sir P. CUNLIFFE-LISTERI will consider with the Chancellor of the Exchequer whether there are any papers which can be usefully laid, but the whole-transaction, as between the Government and the company has been completely and fully set out in the circular to the shareholders. I have stated exactly in my answer what the arrangement is.
Sir F. HALLIs there any truth to the suggestion that there was likely to be a German-British combination? Further, has the right hon. Gentleman taken into consideration the lessons learned during the War, and will the Government take steps to assure themselves in the event of a combination being made that German secrets are made known in this country?
§ Sir P. CUNLIFFE-LISTERThis company will be in exactly the same position as any other dyemaking company in this 925 country, and I am quite satisfied that it is in the best interests of dyemaking that this company should have complete freedom to carry on its business in the hands of competent men, as in the manner which seems best.
Captain BENNIs there anything to prevent a British company from interchanging secrets with a German combination, and, if there is not, what becomes of the whole purpose of the Act?
§ Sir P. CUNLIFFE-LISTERThere is nothing to prevent any company in this country carrying on the manufacture of dyes from interchanging information with any German or other manufacturers, and I should say in the interests of dye-makers in this country that we should get as much information as we possibly can. The whole object of the Dyes Act is to build up as. many dyemaking companies in this country on a successful basis as possible.
§ Mr. ATTLEEMay we be assured that under any arrangements which will be made this company will manufacture in this country and will not be merely a selling company for a foreign firm?
§ Sir P. CUNLIFFE-LISTERI am perfectly satisfied that the whole object of the company in continuing its operations is to continue them as a manufacturing concern. I can only say, as has been announced to-day, that the intention of the company in making these arrangements is to keep in touch with the Board of Trade and with the Government of the day in all these matters.
§ Mr. MACLEANMay I ask the President of the Board of Trade whether he considers that it is dealing fairly with this House, after we have been asked to vote £2,000,000 for the purpose of those shares, and we have given our consent to the purchase of those shares, that the decision of this House is to be set aside and is not to be taken into consideration, and are we to take it that, after assuming the responsibility of voting the money to 926 purchase these shares, the Government can sell them for £600,000 at their own sweet will without a Debate by Members of this House?
§ Sir P. CUNLIFFE-LISTERIt is a new idea that the Treasury and the Chancellor of the Exchequer are not responsible for the best conduct of affairs in matters of this kind.
§ Mr. MACLEANMay I ask your advice, Mr. Speaker, as to what steps Members of this House can take to prevent the sale of these shares until the House has had an opportunity of discussing this question?
§ Mr. SPEAKERI cannot say at the present moment what the powers of the Government may be, but I consider that the best plan would be to ask the Leader of the House to give time to discuss the matter.
§ Mr. MACLEANIf a Motion were to be put down on the Paper in the name of the responsible Leader of the Opposition, and, say, the Leader of the Liberal party, would it have the effect, or would it be looked on as having the effect, of an injunction on the Government not to sell these shares until the matter had been debated in this House?
§ Mr. SPEAKERI cannot answer for the Government, but I think that a Motion of that kind would necessarily claim the attention of the Leader of the House, and be considered. I do not know how far the transaction has gone—whether it has been completed, or whether there is any reservation or not.
§ Mr. MacDONALDMay I ask the Leader of the House whether he is not aware from what has happened that we on this side of the House, with some knowledge of the preceding transactions, consider this as a very serious matter that ought to be reported to the House in conditions which will permit of discussion?
§ The PRIME MINISTERI will take notice of what the right hon. Gentleman has said.