HC Deb 05 February 1953 vol 510 cc2007-9
22. Mr. Blyton

asked the President of the Board of Trade why the licences for the import of fondant from Czechoslovakia have been granted to specially-chosen individuals or firms approved by the Czechoslovak Government; how many of those granted licences are not connected with the trade; and how many were foreigners or ex-foreigners.

Mr. P. Thorneycroft

It is not the case that Czechoslovakia has been permitted to allocate imports of fondant into the United Kingdom only to traders acceptable to her. All the licences were issued to firms or persons resident in the United Kingdom who had a substantial interest in the trade.

I have no information about the past or present nationality of the proprietors, directors or shareholders of the firms and the companies to whom the licences were issued.

Mr. Blyton

Is the Minister aware that the imports of fondant were invoiced by an organisation called "Cenkromice," about which not much is known, and that equal quality fondant could have been obtained at £60 per ton in Holland, instead of £100 per ton for that which was sold to users in this country at £185 per ton? Could not the Minister explain how this occurred?

Mr. Thorneycroft

The arrangements for trade with Czechoslovakia, as the hon. Gentleman knows, are done on a bilateral basis, in which they have some advantages and we have some advantages. The hon. Member will remember, for example, that we have a quota for textiles. As far as the Question on the Order Paper is concerned we have issued these licences on the ordinary basis to those concerned in the trade, and that is really the only way upon which these licences can be issued.

Mr. Bottomley

Would the President consider what has been said by my hon. Friend, because some who were not in the trade before have been given licences, and, judging by the figures mentioned, have been making exorbitant profits?

Mr. Shepherd

Is it not a fact that the basis is only two years' trade, and that these merchants, many of whom, it appears, are very doubtful, are charging up to £195 per ton for "free" fondant?

Mr. Thorneycroft

I would agree that, in the issuing of licences on a matter of this sort, it is not easy to get any really satisfactory basis upon which to build a licensing system, and there is no such basis that we can get for this rather artificial trade in fondants. I am satisfied that we have done our best to do justice between one firm and another.

Mr. Ede

Will the right hon. Gentleman look further into this matter, because in the biscuit-making trade there is very serious concern about some of the hands through which this particular material has to pass? Grave misgivings exist about it.

Mr. Thorneycroft

When I am issuing licences I never consider whether people are foreigners or British subjects, as suggested in the Question, but only whether they have been trading in fondants, and I think that, if the Board of Trade started looking further into that matter, we should be going very wide.

Mr. Blyton

In view of the unsatisfactory answer to the Question, I beg to give notice that I shall raise the matter on the Adjournment.