HC Deb 08 May 1952 vol 500 cc536-7
24. Mr. W. Fletcher

asked the Secretary for Overseas Trade, as representing the Chancellor of the Duchy of Lancaster, what is the profit or loss, to date, made by the Raw Cotton Commission, taking into account the original stock taken over at the valution of market price or cost, whichever is the higher, at the date of opening.

The Parliamentary Secretary to the Board of Trade (Mr. Henry Strauss)

I have been asked to reply.

On 1st January, 1948, the Raw Cotton Commission took over from the Cotton Control net assets to the value of nearly £57 million at the market values then current. There was also transferred to it a sum of approximately £31 million to form a Reserve Fund, representing the profits made from trading by the Cotton Control during the preceding two years. From 1st January, 1948, to the end of July, 1951, the net trading profit has amounted to approximately £10½ million. In arriving at the net trading profit, stocks are valued at cost or replacement value, whichever is the lower.

Mr. Fletcher

While thanking my hon. and learned Friend for that very detailed and simple reply, may I ask if he can give me a more up-to-date figure of the profit and loss in view of the fluctuations in the value of cotton which have since occurred?

Mr. Strauss

No, Sir I cannot give more up-to-date figures than those which I have given, but the annual report will be published in the next week or two.

25. Mr. W. Fletcher

asked the Secretary for Overseas Trade, as representing the Chancellor of the Duchy of Lancaster, what proportion of purchases of cotton, made by the Raw Cotton Commission during the years 1949, 1950 and 1951, were hedged by sales of futures in the New York or other cotton markets.

Mr. H. Strauss

None, Sir.

Mr. Fletcher

While thanking my hon. and learned Friend for that even simpler reply, may I ask him if he is aware that, if he is not hedging the very large stock which he has in his possession, he is becoming the biggest uncovered bull speculator that has ever been seen?

Mr. Strauss

My hon. Friend will observe that I gave a factual answer to his Question. If he wishes to ask a question on the merits of the case perhaps he will put it down.