§ 37. Sir NICHOLAS GRATTAN-DOYLEasked the Chancellor of the Exchequer whether he is aware of the recent rise in the price of petrol; what are the functions and responsibilities of the two Government representatives on the board of the concern responsible for the increase; and whether the Government have given any instructions to them in the matter?
§ 42. Mr. DAYasked the Chancellor of the Exchequer whether any instructions were issued to the directors appointed by the British Government on the Anglo-Persian Oil Company with reference to the recent rise in petrol?
§ 43. Mr. W. BENNETTasked the Chancellor of the Exchequer whether the recent agreement in regard to petrol and the increase in its price was entered into with his knowledge?
§ 44. Lieut.-Commander KENWORTHYasked the Chancellor of the Exchequer when he was made aware of the contemplated raising of the price of petrol by the oil combine; and whether he was made aware of this fact by the Government directors on the board of the Anglo-Persian Oil Company?
§ The PRIME MINISTER (Mr. Baldwin)These questions, relating to petrol prices, concern various Departments, and, with the permission of the House, I will answer them together. The answer is as follows:
The Government are fully alive to the significance to industry and the private consumer of the recent increase in the retail price of petrol, and they have carefully considered the position that arises. I should, however, say at once that in the opinion of the Government this question must be dealt with on general grounds, and not by reference to the relations between the Government and the Anglo-Persian Oil Company. As has been stated on many occasions, the Government are under obligation not to interfere in the commercial management of the company. The statement of that obligation is contained in Command Paper No. 7419 of 1914. In pursuance of this policy, no instructions have been on any occasion sought by the Government directors in connection with price movements, nor have any instructions been given. His Majesty's Government were, therefore, not informed that the recent increase in price would be made.
As regards the general question, the Government consider that ordinarily the public is best served by an efficient industry operating freely. But special considerations arise where a single undertaking or an associated group of undertakings dominates the supply and the general distribution of an article of common use. Here, too, large and efficient businesses acting together may give the public the best service. But they have a duty to supply on reasonable terms; and the public have a right to be satisfied that those terms are reasonable. The Government consider that the marketing of oil products under present conditions falls within this category, and that the companies should be prepared to explain the reasons for any considerable increase in price. In these circumstances, it is the intention 560 of the Government to invite the oil companies concerned to submit a statement explaining the reasons for the recent increase. I wish, however, to make it clear that by taking this action the Government in no way prejudge the question whether the recent increase is justified or not.
§ Sir N. GRATTAN-DOYLEWill my right hon. Friend tell me, in view of his answer, what was in the mind of the Government when these two representatives were appointed on behalf of the Government; what functions they were supposed to perform; and whether any useful purpose can now be served by continuing their services?
§ The PRIME MINISTERI have given a very full answer, and would refer my hon. Friend to the Command Paper which sets forth the views of the Government at the time when the appointments were first made—views which have been held by every succeeding Parliament.
§ Mr. THURTLEAre we entitled to assume that there is implicit, in the request to the companies for information, the idea that, if the explanation is unsatisfactory, certain action will be taken against the companies?
§ The PRIME MINISTERThat is purely hypothetical.
§ Lieut.-Commander KENWORTHYDoes the right hon. Gentleman consider that the formation of a marketing merger between the Anglo Persian and other great oil companies is an ordinary commercial activity, and should not action have been taken to prevent such a merger?
§ The PRIME MINISTERThere is no merger that I am aware of. The question of selling prices is an ordinary commercial activity.
§ Lieut.-Commander KENWORTHYIs the right hon. Gentleman not aware that the Shell and the Anglo-Persian have combined their marketing organisation in one piece of machinery?
§ Sir FRANK MEYERDoes not the recent history of the rubber Industry show the grave danger that there may be if the Government interfere with an industry where the production is international?
§ Sir WILLIAM DAVISONIn any inquiry which the Government makes of the oil companies, will inquiry be made as to what the arrangement is with the Russian Oil Products Company, and whether any provision has been made for compensating the British holders of oil wells whose property has been taken without any compensation?
§ Mr. DAYCan the Prime Minister say whether the two Government directors have attended all the board meetings of the Anglo-Persian Oil Company?
§ Colonel HOWARD-BURYIs it not the case that there is great over-production of oil to-day in the United States of America, and that there is no reason whatever for this increase in price?