§ 57. Mr. SEXTONasked the Chancellor of the Exchequer, seeing that under the Trade Facilities Act a sum of over £5,000,000 has been guaranteed by the British Government to a shipping company called the Silver Line, trading between New York and Eastern ports, that the capital of the said company is limited to £500,000, and that this company is partially under American control and is in direct competition with all British shipping companies trading direct from the British Isles to the same ports, if he will be prepared to extend the same facilities to them?
§ Mr. CHURCHILLThe guarantee given to the Silver Line, Limited, as reported to Parliament in House of Commons Paper No. 174 of 1925, covers a sum of £1,107,000 for the construction of six vessels to be built in British yards. As the ships do not touch the British Isles in their trading route, I do not see how they can be in direct competition with British shipping companies trading direct from the British Isles to the same ports. The Advisory Committee would, of course, consider on its merits any application from any British shipping company.
§ Mr. SEXTONIs not the right hon. Gentleman aware that the same sort of produce is carried from New York to the Eastern ports by our own ships as is now 291 carried by the ships of this line? And is he also aware that the principle directors are domiciled in Brooklyn, in the United States of America, and that most of the capital of the line is American?
§ Mr. CHURCHILLYes, Sir, I am quite aware of what is mentioned in the last part of the supplementary question, but it was one of the objects of the Trade Facilities Act to foster employment in this country, and to encourage the starting of enterprises in this country, not only by British capital but by foreign capital, in order to give more employment.
§ Mr. SEXTONIs the right hon. Gentleman also aware that everybody employed by this company is an American citizen and not a British citizen?
§ Mr. CHURCHILLIt is a question of getting ships built in the shipyards.
§ Mr. MACQUISTENWill the right hon. Gentleman see that only British subjects are employed upon these ships?
§ Mr. CHURCHILLI think that would be inconsistent with the policy the House has adopted in regard to Trade Facilities, which has undoubtedly been to direct enterprises to this country which would otherwise be located in some other country.
Mr. SANDEMAN ALLENIs the right hon. Gentleman aware that by subsidising this line he is, as a matter of fact, seriously interfering with the trade of a number of British shipowners?
§ Mr. CHURCHILLOf course all these interferences, which are favourable in one direction, very often have unfavourable reactions in another direction. The whole question was debated very fully last night, and I suggest that an occasion like that is the best on which to explore this subject.