§ 67. Sir JOHN FERGUSONasked the Chancellor of the Exchequer whether in view of the fact that irregularities have been disclosed in the conduct of the affairs of the Royal Mail Steam Packet Company during the years 1926 to 1929, he will state what steps were taken by the Treasury to ascertain the financial position of the Royal Mail Steam Packet Company before they guaranteed loans to that company and/or its subsidiary companies?
§ Mr. P. SNOWDENGuarantees under the Trade Facilities Acts were given by 1068 the Treasury on the recommendation of the Advisory Committee appointed under those Acts. No guarantees were given to the Royal Mail Steam Packet Company; and of the two guarantees to its subsidiary companies one was given in 1923 and one in the beginning of 1926.
§ Sir J. FERGUSONWould the right hon. Gentleman be prepared to hold an official inquiry into the statements which have just been issued and which have been so severely condemned?
§ Mr. SNOWDENI have no information at present which would justify such an inquiry.
§ Mr. WHITEMay I ask whether the Chancellor of the Exchequer is fully seized of the very grave and widespread dissatisfaction with the statement of Sir William McLintock that fraudulent balance-sheets have been issued, and would the right hon. Gentleman consider the advisability, in the interests of the good name of British commerce and industry, of instituting an inquiry into this matter, and, if necessary, associating with it the Law Officers of the Crown?
§ Mr. SNOWDENThat does not fall within my province. If such an inquiry were instituted, it would have to be undertaken by another Government Department.
§ Mr. LAMBERTWhere these trade facilities grants are made to private companies, does the Treasury examine the balance-sheets of the companies to see whether they are accurate or not?
§ Mr. SNOWDENAs it happens, neither of those two guarantees were given during the time that I was in charge, and therefore I do not know whether the balance-sheets were examined or not.
§ Mr. SPEAKERSupplementary questions are becoming abused.
§ 69. Mr. LAMBERTasked the Chancellor of the Exchequer if he will state the amount of advances that have been made under the Trade Facilities or other Acts to the Royal Mail group of companies; how much of these advances are outstanding; and whether there is security to cover the taxpayer against loss?
§ Mr. SNOWDENI presume the right hon. Member to refer to the whole of the subsidiary and associated shipping companies of the Royal Mail Steam Packet Company. The only advances to this group with which His Majesty's Government is directly concerned are the loans guaranteed under the Trade Facilities Acts 1921–1926. These loans totalled approximately £5,400,000 of which some £4,300,000 is now outstanding. On the basis of going concern values I am advised that these loans are adequately secured.
§ 70. Mr. HANNONasked the Chancellor of the Exchequer whether, in view of the fact that among the liabilities of the Royal Mail Steam Packet Company through a subordinate company is a sum of £2,074,200 guaranteed by His Majesty's Government, he will explain the position of the Treasury in the matter?
§ Mr. SNOWDENThe hon. Member presumably refers to the liabilities of the Oceanic Steam Navigation Company under the heading of Government Guaranteed Loans, amounting to £2,074,200. Of this amount, £1,540,000 represents loans guaranteed by His Majesty's Treasury under the Trade Facilities Acts, and the balance loans guaranteed by the Northern Irish Ministry of Finance. The loans under the Trade Facilities Acts are guaranteed as to principal and interest by His Majesty's Treasury.
§ Mr. HANNONMay I ask whether the right hon. Gentleman is quite satisfied that the securities in this case are adequate?
§ Mr. SNOWDENI am advised that that is the case.