HC Deb 27 July 1943 vol 391 cc1366-7
14. Mr. Burke

asked the President of the Board of Trade why the plant together with the goodwill and processes of the German-owned firm known as Albert Products, Limited, manufacturers of synthetic ingredients for lacquers and paints to the patents of Dr. Albert, which was taken over by the Custodian of Enemy Property, was sold to Imperial Chemical Industries, Limited, and not offered for sale to the trade in general?

Mr. Dalton

Sales of enemy-owned businesses by the Custodian of Enemy Property are exceptional. The factory of Albert Products was completely burned out, as a result of enemy action, in April, 1941, and was unable to resume production on its own resources. The decision to sell the business, which was taken fol2 lowing consultation with the Supply Departments, was known in the trade, since inquiries from a number of firms were received by the Custodian, who also approached others. A number of offers were submitted. I.C.I.'s offer was considered by the Custodian to be the best and was, therefore, accepted.

Mr. Burke

Is it not true that a former director of the firm who wanted to purchase the goodwill and processes was informed by the accountant acting for the Custodian of Enemy Property that they could not see anyone but I.C.I.? Does my right hon. Friend not realise that by putting the raw materials of an important industry through a bottleneck controlled by one or two important firms he is giving a very important advantage to them?

Mr. Dalton

If my hon. Friend has any further evidence regarding this case which he would like me to look at, I would be glad to do so, but I have answered the Question on the Order Paper. The answer is that a number of firms were made aware of this, and a number of offers were made. In the judgment of the Custodian of Enemy Property, with whom I do not wish unduly to interfere, this was the best offer and therefore was accepted.

Mr. Burke

Was this advertised in the usual way in the trade papers? Why was the general trade not given an opportunity?

Mr. Dalton

We had better get the facts right. It is not the general practice of the Custodian of Enemy Property to advertise these sales. Therefore the general practice was not departed from. I repeat that the Custodian of Enemy Property in the pursuit of his duties approached a number of firms, and a number of offers were made. In his judgment the offer of I.C.I. was the best, and therefore he accepted it.

Mr. Shinwell

Does my right hon. Friend not appreciate that this transaction is increasing the monopolistic powers of I.C.I., and that these powers may constitute a very grave menace to the State?

Mr. Dalton

In so far as that is so, it is a large question, which can be debated on another occasion. In this particular case the Custodian of Enemy Property judged, and I am not prepared to say that he was wrong, that this was the best offer in the national interest from the point of view of obtaining both a good price for these assets and also from the point of view of assisting production needed for the war effort. His action was taken after due consultation with the Supply Ministers who are responsible for producing the weapons of war.

Mr. A. Bevan

If it is not the practice to have these things advertised through the usual trade channels, ought that not to be done to prevent the possiblity of very grave irregularities?

Mr. Dalton

I do not believe that the Custodian of Enemy Property would be guilty of any irregularity; he is a very faithful and competent servant.

Mr. Bevan

I did not say that.

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