HC Deb 16 March 1931 vol 249 cc1654-5
38. Mr. HARDIE

asked the Minister of Agriculture if he will state the difference in the terms offered to growers of beet by those factories which have accepted the Government offer and the Anglo-Dutch group; and whether he is able to state the amount of the reserves accumulated by the Anglo-Dutch group during the subsidy period?

Dr. ADDISON

My information is that the companies of the Anglo-Dutch Group of Beet-Sugar Factories are prepared to operate their factories for the manufacture of white sugar from home-grown beet in the season 1931, not for the pur- pose of making profits for their shareholders, and/or increasing their reserves, but in order to utilise the whole of the net proceeds of such manufacture in payments to farmers for beets delivered. No provision for depreciation on factory buildings and machinery will be made and no charge for directors' fees or for any increase in the existing standard of remuneration to the administrative and managerial staff.

The companies of the Anglo-Dutch Group state that the grower will receive during the season payments on account at the rate of 30s. per clean ton of beet of 15½ per cent. sugar content delivered at the factory. If, in the opinion of the factories, the markets justify an additional payment on account, this will be made. The reserves, after provision for depreciation, of the five companies in the Anglo-Dutch Group amounted, on 31st March, 1930, to £1,046,845.

The terms offered to growers of beet by those factories that have accepted the Government offer provide a firm price of 38s. per ton for beet of 15½ per cent. sugar content delivered at the factory. In offering this price, the Government has required from the factories in 1931 a maximum sacrifice of provision for depreciation and other capital charges, profit and additions to reserves. All beet contracts offered by farmers are to be accepted by factories up to their normal throughput capacity, and the whole of the contracts of each factory are to be on the same terms as to price.

Mr. HARDIE

Have these accumulations came from the national subsidy?

Dr. ADDISON

Yes, to a great extent, I think. They could not possibly have been accumulated otherwise.

Mr. HARDIE

Have the other companies also got accumulations?

Dr. ADDISON

No. I think these companies have much greater accumulations than any others.