HC Deb 21 November 1927 vol 210 cc1412-3
68. Mr. JOHNSTON

asked the Minister of Agriculture whether his attention has been drawn to the effects of the present methods of paying subsidy under the Beet Sugar Subsidy Act upon the imported sugar refining establishments in this country; and whether he is prepared to set up a committee of inquiry into the existing arrangements for establishing the beet-sugar industry?

Mr. GUINNESS

I am, of course, aware of the contention that the British Sugar (Subsidy) Act has had an adverse effect on refiners of imported raw sugar. The possible effect of the subsidy scheme was fully considered both before and during the passage of the Subsidy Act through Parliament, and it was only after considerable debate that the present Parliament decided the arrangements for subsidising the new British beet sugar industry for a period of 10 years on a diminishing scale. The Government, therefore, cannot contemplate any change in the scheme sanctioned by Parliament under the British Sugar (Subsidy) Act, 1925, in accordance with which the industry has been and is being developed.

Mr. JOHNSTON

Is the right hon. Gentleman not prepared, in the light of the experience which has been gained since this Act came into operation, to have a committee of inquiry to consider the allegations made as to the amount of distress ascribed to the working of the Act?

Mr. GUINNESS

I do not think it would be appropriate for me to appoint such a committee, because, if the refiners are being injured, it is by no means only due to the beet sugar industry, and, if they are able to make a case for some alleviation of their position, it clearly cannot be at the expense of the beet sugar industry, which has been started under a definite statutory contract.

Mr. JOHNSTON

Is that not all the greater reason why the right hon. Gentleman should set up a committee of inquiry to have this question thoroughly thrashed out?

70. Mr. STEPHEN

asked the Minister of Agriculture the total amount of paid-up capital of the various concerns which have been set up in this country in consequence of the operation of the sugar-beet subsidy?

Mr. GUINNESS

The paid-up share capital of 11 companies controlling 14 beet sugar factories on 31st March, 1927, amounted to £3,242,028. Since that date five more factories have begun to operate with a total paid-up share capital of £1,374,983.

Mr. A. V. ALEXANDER

Are we to understand from the Minister that the amount of the subsidy so far paid is about double the paid-up share capital?