HC Deb 17 May 1927 vol 206 cc968-70
32. Mr. POTTS

asked the Secretary for Mines whether sales-agency commission paid in the coal-mining industry is included in the costs of production; if so, under what itemised heading is the amount entered; and what was the total sum paid for the year 1925?

Colonel LANE FOX

The principles followed in compiling the wages ascertainments are determined by agreement between the owners' and the workmen's representatives. I understand the practice to be that selling expenses, including sales-agency commissions, are not included in the costs of production in the ascertainment statement, but are deducted from the gross proceeds of sale in arriving at the figure of proceeds to be used in the ascertainment. The amounts so deducted are confidential to the joint accountants and are not shown in their Reports.

Mr. POTTS

What was the amount? The main point is that the amount of sales agency commissions and expenses is deducted from the receipts and remainder returned to the auditors as the proceeds of the coal industry. That is absurd and not true. Further, what was the amount paid out in 1925?

Colonel LANE FOX

I have answered that in the main answer. The amounts so deducted are confidential to the Joint Accountants and are not shown in the Report.

Lieut.-Commander KENWORTHY

There is no objection, surely, to giving the total amount.

Colonel LANE FOX

I am not permitted to publish nor do I know the amount.

Mr. POTTS

Having regard to the fact that, the miners' wages would be more if that money went into the industry, why is the amount not included in the expenditure?

Colonel LANE FOX

That is the common practice under the agreement. It has been agreed to by the parties.

Captain GARRO-JONES

In view of the widespread belief, whether true or not, that these sales agency commissions are excessive, why should they be kept confidential; and will the right hon. Gentleman take steps to remove any restrictions on their publication so that the country will be able to judge whether they are in fact excessive or not?

Colonel LANE FOX

The hon. Member had better put that question to the people who have made the agreement.

Captain GARRO-JONES

I want the right hon. Gentleman to take the responsibility of seeing that they are published.

Mr. A. HOPKINSON

Is it not a fact that all these restrictions are passed by the auditors appointed by the miners in each case and, if they are dissatisfied in any way with the prices put on, their remedy is to dismiss their auditors and put in another firm that they can trust?

Mr. POTTS

The point the hon. Member is raising cannot occur. Is it not true that the money that the hon. Member is referring to never comes to the auditors and never appears in the accounts?

Mr. SPEAKER

That is a matter for debate.