HC Deb 16 October 1940 vol 365 cc702-3
54. Mr. Stokes

asked the Minister of Supply whether he proposes to continue the annual payment of £221,400 to the British Metal Corporation for managing the non-ferrous metal control; if so, whether he will explain the justification of this sum, which amounts to guaranteeing the Corporation's pre-war level of profits, in view of the fact that the Corporation only exists for brokerage purposes?

Sir A. Duncan

I do not propose to interfere with the terms of the agreement under which the British Metal Corporation are operating the non-ferrous metal control. My hon. Friend is under a misapprehension in stating that these terms amount to guaranteeing the Corporation's pre-war level of profits. The annual fee is made up in the main of an allowance for the cost of staff and expenses incurred on account of the control and for the services of the company in putting their organisation and certain of their revenues at the disposal of the Ministry.

Mr. Stokes

While the revenue concerned is about £90,000, there still remains something of the order of £150,000 which was paid in fees. Can the Minister justify that?

Sir A. Duncan

I have already said that in the main the fee is an allowance for the cost of staff and expenses incurred.

Mr. Glenvil Hall

Is it not a fact that the right hon. Gentleman's predecessor offered to reconsider this at the end of the year? Has not the year nearly run out?

Sir A. Duncan

I have looked at the agreement, and I see no reason to interfere with its operation.

Mr. Stokes

Does the Minister mean that the agreement stands for the duration of the war and will not be revoked?