§ 45. Lieut.-Commander KENWORTHYasked the Prime Minister what action he proposes to take regarding the reply of the oil companies to his communica- 1847 tion regarding the rise in price of petrol and other oils; and whether he has any guarantee that there will be no further rise in the prices of these essential commodities?
§ The PRESIDENT of the BOARD of TRADE (Sir Philip Cunliffe-Lister)I have been asked to reply. The statement of the oil companies is under consideration. As regards the last part of the question, the Prime Minister has already stated that the Government consider that undertakings dominating the supply and distribution of articles of common use have a duty to supply on reasonable terms and to satisfy the public that their terms are reasonable, and these considerations will of course be equally applicable to future as well as to present circumstances. But subject to what I have just said, it is not the intention of the Government to attempt to interfere with the commercial policy of the oil companies.
§ Lieut.-Commander KENWORTHYI am much obliged to the right hon. Gentleman, but may I ask him whether, when he speaks of an examination, it means that it will be a commercial and actuarial examination of the figures submitted, and also of the policy of basing prices on the Gulf level?
§ Sir P. CUNLIFFE-LISTERIt means such examination as the Government consider necessary in order to arrive at a just conclusion.
§ Mr. DAYIn that examination, will the details of the agreement with the Russian oil interests be taken into consideration?
§ Sir P. CUNLIFFE-LISTERI am not aware what the details are.
§ Mr. W. BENNETTHas the right hon. Gentleman any power to enforce prices for a necessary article?
§ Sir P. CUNLIFFE-LISTERThat question does not arise. What happened is that the Prime Minister made a statement to the House which, I think, commanded general assent. The oil companies immediately replied with a very full statement. It would, perhaps, have been for the convenience of everybody had that statement preceded and not followed the rise.
§ Captain FRASERWill the right hon. Gentleman use all the pressure which the Government can exert upon the Russian interests to get their reasons for raising the price along with these capitalist companies?
§ Sir P. CUNLIFFE-LISTERI am not aware that the Government have any means of exercising pressure upon Russian interests.
§ Colonel WEDGWOODWill the right hon. Gentleman tell the House how close is the touch now kept between his Department and the two Government directors on the Board of the Anglo-Persian Oil Company? Will he see that in future the touch is sufficiently close to warn the Government beforehand that a step such as this is to be taken?
§ Sir P. CUNLIFFE-LISTERThe touch between the directors and my Department does not exist. The touch exists with the Treasury, who appoint these directors. The relations between the Government and the directors of the Anglo-Persian Oil Company will be precisely the same in the future as in the past, for the reasons given by the Prime Minister.
§ Colonel WEDGWOODMay I ask the Chancellor of the Exchequer why he is not answering this question?
§ Mr. CHURCHILLBecause this question deals with matters which fall within the purview of the Board of Trade. Questions connected with the relations of the Government with the Anglo-Persian Oil Company are properly addressed to me, but this question is general and deals with the price of oil from all companies.
§ Colonel WEDGWOODCan the right hon. Gentleman assure the House that in future there will be closer touch between our directors on the Anglo-Persian Oil Company and the various Government Departments, and that his Department will communicate with the Board of Trade for the information of the latter?
§ Mr. CHURCHILLThe closest touch is maintained between the Government Departments concerned, including the Treasury and the Admiralty, and those directors, but as I have said on many occasions, we are under a declared obligation not to interfere with the com- 1849 mercial management of this company. That may be disputed, but I can assure the House that it cannot be challenged with success. Whether it is a good thing or not is a matter on which hon. Members may differ, but unquestionably we have bound ourselves not to interfere in the commercial management of this company.
§ Lieut.-Commander KENWORTHYWhat did the right hon. Gentleman mean last summer when he spoke of what he would do if the nation were held to ransom?
§ Colonel WEDGWOODHolding the majority of the shares, are we not in a position to change the whole of the directorate if we choose to do so?
§ Mr. CHURCHILLI do not know whether the hon. and gallant Member has studied the Command Paper to which I have frequently referred, but I recommend him to read it without delay.