§ 7. Mr. Sutcliffeasked the President of the Board of Trade whether, in addition to the figures given in the Trading Accounts and Balance Sheets for 1947–48, he can provide further information as to how the profit of £28 million in connection with the purchase and supply of 637 cotton and ancillary materials was achieved; and whether he is satisfied that no unnecessary burden has been placed on the cotton industry of this country by extracting such a profit from these transactions.
§ Mr. H. WilsonThe profit in the trading year 1947–48 arose from the fact that prices of raw cotton were rising rapidly in the latter half of 1946, selling prices in this country were increased and stocks which had been acquired at lower prices were being sold or re-valued at the higher price. The answer to the second part of the hon. Member's Question is, therefore, "Yes, Sir."
§ Mr. SutcliffeCan the right hon. Gentleman say what benefit, if any, has been obtained, or will be obtained, by the cotton industry as a result?
§ Mr. WilsonAs the hon. Gentleman knows, it has been the policy of the Raw Cotton Commission to adjust their selling prices to the replacement value of cotton in various markets of the world, and, therefore, this capital gain will be useful in enabling them to do that.