HC Deb 15 April 1930 vol 237 cc2719-21
42. Lieut. - Commander KENWORTHY

asked the Lord Privy Seal whether he is in a position to make any further statement regarding the formation of the proposed £6,000,000 company for the purpose of rationalising British industry: and what steps will be taken to safeguard the position of displaced work-people?

Mr. THOMAS

With Mr. Speaker's permission, I will make a statement at the end of questions on this subject.

Mr. SPEAKER

I think that, in the case of an unusually long answer, that is the best thing to do.

Later—

Lieut. - Commander KENWORTHY

May I now ask Question 42?

Mr. THOMAS

I am glad to be able to announce that a company is to-day being registered at Somerset House, under the name of the Bankers Industrial Development Company, Limited, with a nominal capital of £6,000,000 divided into 45 "A" shares and 15 "B" shares of £100,000 each.

The company has the support of a very considerable proportion of the most influential banking and financial institutions of the country by whom the "A" shares have been subscribed. The "B" shares of the company have been subscribed by the Securities Management Trust, Limited.

The directorate of the new company is honorary, and is as follows:

The right hon. Montagu Norman (Chairman).

Sir Guy Granet, who will also act as alternate to Mr. Norman.

Baron Bruno Schroder with Major Albert Pam as alternate.

Mr. A. R. Wagg with Mr. Nigel Campbell as alternate.

Mr. E. R. Peacock.

Mr. C. Bruce Gardner—managing director of the Securities Management Trust, Limited.

In addition to the board of directors, the company will have the services of an advisory council upon which a number of influential persons engaged in financial business will be invited to serve.

The advisory council will have no executive duties to perform, but their services, either collectively or individually, will be available to the board of directors in a consultative capacity.

The object of the company is to receive and consider schemes submitted by the basic industries of this country for the purpose of their rationalisation, either by industries or by regions. In the case of schemes which may be approved, arrangements will he made for the provision in one way or another and through existing agencies of such moneys as may seem to be essential.

As regards the last part of the question, I would refer my hon. Friend to the reply given by my right hon. Friend the Prime Minister on the 5th February to the hon. Member for Dumbarton Burghs (Mr. Kirkwood).

Lieut. - Commander KENWORTHY

While thanking my right hen. Friend for the answer, may I ask him, when he talks about money "through agencies," whether that means that if this company approves of schemes of rationalisation he will be consulted with a view to guaranteeing loans by the State?

Mr. THOMAS

No. So far as the State's money is concerned, it is not intended that it should be involved, and I hope it will not be involved.

Lieut.-Commander KENWORTHY

In that case, where do the Government come in with regard to this company?

Mr. THOMAS

So far as money is concerned, the Government do not come in. I announced in a speech at Manchester, in reply to much criticism about the action of the banks, that money could and would be found for reorganisation and rationalisation. In a, number of questions in this House I was asked what I meant by "the City"—I was asked to define it—and there were many other questions. I have now given the answer to those supplementary questions and to my Manchester speech.

Mr. HAMMERSLEY

Are we to take it that what is intended is that the reorganisation of basic industries is only to take place with the approval of this Bankers' Industrial Company?

Mr. THOMAS

On the contrary I hope —in fact I know—there are a number of schemes of reorganisation being considered to-day; I am consulted, and I have given help towards them. I announce this as another stage in that reorganisation on the financial side which I had announced previously.

Mr. BECKETT

Has the right hon. Gentleman supplied to all the directors a copy of "Labour and the Nation"?

Mr. MOND

Will the actual subscribers to the "A" shares be known to the public through the usual channels?

Mr. THOMAS

That is hardly a question which I could answer. The hon. Member will know what steps to take to get that information.

Viscountess ASTOR

Do we understand that the Government have definitely gone back now on all Socialistic schemes for dealing with unemployment?

Mr. MACQUISTEN

rose—

Mr. SPEAKER

Further supplementary questions ought to be put on the Paper.