HC Deb 22 June 1948 vol 452 cc1123-5
42. Mr. A. R. W. Low

asked the Secretary of State for War why, in view of the assurances given by his predecessor in the House of Commons on 21st July, 1947, that all possible disciplinary action was being taken in connection with the £58 million currency losses, investigations made with the object of establishing responsibility for part of these losses have been abandoned; and whether, in the light of that assurance, he will now make a statement.

Mr. Shinwell

The hon. Member is mistaken in thinking that investigations were abandoned in any case where it was profitable to pursue them. As undertaken by my right hon. Friend, disciplinary action was taken to bring to trial cases where evidence could be found, and to prevent further infractions of regulations.

Mr. Low

Would the right hon. Gentleman do what I asked him to do last week, and which he refused to do—that is, give a statement to the House of the disciplinary action which has been taken—and will he also try to explain to the House why it is that S.I.B. investigations, which began last July, appear now to have stopped?

Mr. Shinwell

A great deal of disciplinary action has been taken. About 200 courts-martial have been held and a large number of persons have been adequately sentenced. Beyond that we cannot go. We cannot take disciplinary action where it is not desirable to take it.

Colonel Crosthwaite-Eyre

Can the Secretary of State for War say how much money has been recovered as a result of these actions?

Mr. Shinwell

I have no information as to the amount recovered.

Mr. Low

Does not the right hon. Gentleman realise that I asked him last week to say how much of the loss of £58 million was covered by the disciplinary action already taken? If he cannot say now, will he say so later?

Mr. Shinwell

It is very difficult to say actually how much was recovered or lost. All we can say is that action was taken in cases where it was possible to take suitable action and that the offences were adequately dealt with by the judicial authorities concerned. Apart from that, the losses were stopped in 1946—or so I understand, for that was before my time—by the introduction of new canteen vouchers. That, of course, was the right action to take to stop unseemly behaviour of this kind.

Colonel Gomme-Duncan

Can the right hon. Gentleman amplify his statement that disciplinary action would only be taken where desirable, because, when public funds are done away with, it is always desirable to take disciplinary action?

Mr. Shinwell

It is not desirable to take disciplinary action when it is undesirable.

Viscount Hinchingbrooke

Now that currency reform has taken place in Germany, is there any prospect of getting some of this money back from the German people who presumably have benefited by it?

Mr. Shinwell

That is as relevant as are some of the noble Lord's references to War Savings.