HC Deb 22 July 1942 vol 382 cc40-2
The Chancellor of the Exchequer (Sir Kingsley Wood)

I have to inform the House that the arbitration between the Treasury and Messrs. Courtaulds, Limited, in respect of the sale of the Viscose shares has been concluded. The award of the Umpire, Mr. Justice Sim-monds, determines that the sum to be paid by the Treasury to Messrs. Courtaulds, Limited, in, respect of the Viscose shares transferred by the company to the Government shall be £27,125,000, with interest at the rate of 3 per cent. from March, 1941 (the date when the shares were transferred) to the date of payment. I am informed that the directors do not propose to make a distribution to the stockholders during the war period of any part of the award above referred to. In this they have the approval of His Majesty's Government. I am also informed that it has been decided to invest the sum awarded in subscriptions to current Government issues.

The sum awarded is greater than the sum realised in the United States by the sale of the Viscose shares. That sum was approximately £15,500,000 gross and approximately £13,500,000 net after deduction of expenses in connection with the transaction. The House will remember that the transaction was an exceptional one, carried through in very special circumstances.

Mr. Garro Jones

May I ask whether the award of the learned Judge will be published with any reasons for the conclusion at which he has arrived?

Sir K. Wood

I shall be pleased to publish particulars of the award in the Library.

Mr. Maxton

On a point of Order. Can you say, Mr. Speaker, what item this is on the Order Paper?

Mr. Speaker

It is not on the Order Paper, but the Chancellor of the Exchequer has a perfect right to make a statement on a subject of this kind if he thinks fit.

Mr. Maxton

Unsolicited?

Mr. Lipson

Are the Government pledged to accept this award in view of the fact that the shareholders in this company and many other American companies had their shares requisitioned by the Government at a loss?

Sir K. Wood

The award is final.

Mr. Evelyn Walkden

Will the nation be told why this company is to have double value for its stock in comparison with what the nation actually received?

Sir K. Wood

I said that the circumstances were exceptional. The hon. Gentleman will no doubt remember the need we were in at that time. It showed we were determined to do our utmost to realise resources for expenditure in America.

Sir Percy Harris

On whose advice did the Government originally act? Was it on the advice of the Treasury or their agents in America?

Sir K. Wood

I explained fully to the House at the time the steps that were taken, and I am fully satisfied that all possible steps were taken in the United States by the issues of shares to the public to get the maximum amount of dollars that could be obtained for purposes of our war expenditure in the United States.

Mr. Buchanan

Is the Chancellor aware that this statement will cause a great deal of disquiet, in view of the fact that he now proposes that £13,500,000 more than has been actually received by the Government should be paid to these shareholders at a time when he is giving a parsimonious £1,000,000 to a large number of old-age pensioners?

Sir K. Wood

I do not think the hon. Gentleman could have followed the matter. It was referred to arbitration, and I have announced the award.

Mr. Silverman

Does the right hon. Gentleman mean that at a moment of great stress valuable assets of this country in America valued now at £27,000,000 have been disposed of for £13,500,000?

Sir K. Wood

I have just stated the facts.

Mr. Pethick-Lawrence

Following upon this transaction, am I right in thinking that the Government adopted an entirely different method of handling British assets in the United States in order to avoid a repetition of this kind of thing?

Sir K. Wood

Yes, Sir, this was the only case.