HC Deb 10 February 1943 vol 386 cc1323-4
71. Major Procter

asked the Parliamentary Secretary to the Ministry of Food whether he is aware that the scheme for the concentration of the soft drinks industry will transfer all the assets of some 1,400 manufacturers to a new company with dictatorial powers; that the directors, exclusively, represent the largest manufacturers; that the Articles of Association do not provide for the usual election or replacement of directors, by the members in general meeting; whether the directors are enabled to amend the scheme in any respects without the sanction of members of the company; and what steps he proposes to take to ensure that the Articles of Association conform to established company practice and to the Companies Act, 1929?

Mr. Mabane

I cannot agree that the effect of the scheme to which my hon. and gallant Friend refers will be to transfer assets as he suggests. The directors of the Soft Drinks Industry (War-time) Association, Limited, were selected on grounds of competence and not as representing particular manufacturers. The Articles of Association provide that the existing committee shall submit to the Minister before 28th February a scheme for the reconstitution of the committee as from 1st June, so as to make it include representatives of the various classes of manufacturers engaged in the industry. This scheme is to be submitted to an extraordinary general meeting of the members of the association. Variations in the scheme cannot be made without the prior approval of the Minister and the concurrence of my right hon. Friend the Chancellor of the Exchequer. The association was incorporated under the Companies Act, 1929, on 7th August, and I know of no reason to suppose that the Articles of Association are not in conformity with that Act.

Major Procter

Is the hon. Gentleman aware that this scheme and these Articles of Association are the worst examples in our legislation of syndicalism and National Socialism, which even Mussolini could not equal?

Mr. Mabane

I cannot agree with that. I observe that a recent issue of the "Mineral Water Trade Journal" states that their conclusion quite definitely is that the trade as a whole accepts the inherent justice of the scheme and is not ungrateful for the trouble taken on its behalf.

Major Procter

Owing to the unsatisfactory nature of the reply, I beg to give notice that I shall raise the matter on the Adjournment.