HC Deb 04 March 1936 vol 309 cc1370-1
40. Mr. ELLIS SMITH

asked the Under-Secretary of State for Air whether he will consider the effect of the recent speculation in aircraft shares when asking for estimates in the future?

Sir P. SASSOON

The market valuation of aircraft companies' shares has no effect on contract prices. The House has been informed on a number of occasions of the steps which have been taken to prevent excessive profits.

Mr. SMITH

Is not the Under-Secretary aware that the speculation which is taking place is bound to have an inflationary effect on the capital invested, and will he consider the desirability—

HON. MEMBERS

Why?

Mr. SMITH

Because of our experience in the past.

Sir P. SASSOON

I think that booms on the Stock Exchange very often have little relation to realities. In this case it cannot be due to excessive profits, because the prices for the expansion orders have not yet been fixed.

Mr. THURILE

Can the right lion. Baronet say what the view of his Department is as to what are excessive profits? Can he define excessive profits?

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