HC Deb 19 July 1927 vol 209 cc225-7
47. Mr. LUNN

asked the Chancellor of the Exchequer whether any representations have been made to the British Government by the Government of Newfoundland regarding the financial position of the Newfoundland Power and Paper Company; and the nature of such representations and the reply thereto?

Mr. McNEILL

I would refer the hon. Member to the reply which I gave to my Noble Friend the Member for Shrewsbury (Viscount Sandon) on the 28th June.

Mr. LUNN

In that answer there was no reply to the point mentioned in the question as to whether the Newfoundland Government had made any representations. May I ask the right hon. Gentleman if the total amount of the guarantee of the Newfoundland Government is similar to that of this country?

Mr. McNEILL

The hon. Member is mistaken. In the answer to which I have referred, I said that a communication had been received by the Secretary of State for the Dominions, but that I was unable at that time to make any statement with regard to the negotiations which were proceeding.

Mr. CONNOLLY

Can the right hon. Gentleman say whether the sale is complete or not?

Mr. SPEAKER

That is the subject of the next question.

Colonel WEDGWOOD

Is the Financial Secretary aware that the British taxpayers are responsible for the interest on this loan?

48. Mr. LUNN

asked the Chancellor of the Exchequer whether the sale has been completed of the Cornerbrook Power and Paper Company's works, Newfoundland, to the International Paper Company, United States of America; what security there is that the money used out of the £2,000,000 guarantee under the Trade Facilities Act will not be lost to this country; and if he will state the names of the British Government representatives on the board of directors and the fees paid to them for their services?

Mr. McNEILL

The answer to the first part of the question is in the negative. With regard to the second part, I can add nothing to the reply I gave to my Noble Friend the Member for Shrewsbury (Viscount Sandon) on the 28th June. In reply to the third part of the question, the Treasury director on the board of the Newfoundland Power and Paper Company, Limited, is Sir George Stapylton Barnes, K.C.B., K.C.S.I., who is paid a fee of £600 per annum.

Sir F. WISE

Is the Treasury director in Newfoundland at the present time?

Mr. McNEILL

No, I think not.

Sir F. WISE

Has he been to Newfoundland?

Mr. McNEILL

Yes.

Colonel WEDGWOOD

Are the interests of the British taxpayer being watched in the case of this sale, and may we be assured that their interests will prevail over all other interests?

Mr. McNEILL

Certainly. The belief of the Treasury is that if this sale is carried through the security of the British taxpayers will not be prejudiced in any way.