§ 45. Lieut.-Commander KENWORTHYasked the Chancellor of the Exchequer whether be has any information as to the existence of a price-fixing ring or agreement between the Anglo-American, Royal Dutch Shell and Anglo-Persian Oil Companies; and what is his information.
§ The CHANCELLOR of the EXCHEQUER (Mr. Churchill)I am informed that it is the practice of the three companies named to act in agreement when the movement of world prices justifies a rise or fall in prices in this country.
§ Lieut.-Commander KENWORTHYHas the light hon. Gentleman any information as to how long it has been the custom to act in restraint of trade in this way?
§ Mr. CHURCHILLI have no information except what I have given, but I do not think that a fair consideration would lead to any suggestion that there has been an over-charge to the public.
§ Lieut.-Commander KENWORTHYDoes not the right hon. Gentleman see that the point is the danger of loss of independence by this company in which we have invested our money?
§ Mr. CHURCHILLI am told there is no loss of independence.
§ Mr. T. WILLIAMSAre reports made periodically by these directors, and, if so, when was the last report?
§ Mr. CHURCHILLI would refer the hon. Member to a Paper which was laid in 1914 and which gives a full account of the actual subjects on which the Government have a regular and established right to intervene, and also explains the limits which they put on their intervention. If the hon. Member will read that Paper he will see how very strictly our action is defined.
§ Mr. HORE-BELISHAIf this price-fixing agreement is detrimental to British consumers, what action does the right hon. Gentleman intend to take?
§ Mr. CHURCHILLI really cannot deal with a hypothetical question of that kind.
§ Mr. PALINGAre we to understand that the Government have no established right to interfere with this question of price-fixing?
§ Mr. CHURCHILLI must again ask the hon. Gentleman to read this Command Paper, from which he will see that we defined our rights, and the limits within which we would exercise them, and also specified certain directions in which we would not intervene. We are bound by that absolutely.
§ 46. Lieut.-Commander KENWORTHYasked the Chancellor of the Exchequer how many Government directors are on the board of the Anglo-Persian Oil Company; whether this number is in proportion to the share holding of the Treasury in accordance with the right of appointment laid down in Cmd. 7419 of 1914, paragraph 4; and, if not, whether it is proposed to nominate extra Government directors?
§ Mr. CHURCHILLThe number of Government directors on the board of the company remains two, as in 1914. The answers to the last two parts of the question are in the negative. It has not been found necessary for His Majesty's Government to exercise their right to nominate a larger number of directors in proportion to their share in the company.
§ Lieut.-Commander KENWORTHYDoes not the right hon. Gentleman see that in the Command Paper to which he has referred my hon. Friends, he has a definite right to appoint extra directors, and, in view of the growing 1164 importance of an independent oil supply, does he not think that right should be exercised?
§ Mr. CHURCHILLNo, we already have a plenary veto in regard to matters in which we are interested, and which are directly set out in the Command Paper referred to. We have the fullest possible power, and no addition to our power could be made by appointing more directors.
§ Lieut.-Commander KENWORTHYWould not extra directors be able to keep in closer touch with the business, and inform the right hon. Gentleman more fully?
§ Sir H. BRITTAINIs it not a fact that this business has been extraordinarily well run, and that the British Government and people have done extraordinarily well out of it?