HC Deb 19 November 1953 vol 520 cc1937-40

Considered in Committee [Progress, 18th November.]

[Sir CHARLES MACANDREW in the Chair]

Motion made, and Question proposed, That, for the purposes of any Act of the present Session to modify the functions of the Raw Cotton Commission, and to enable the said Commission to be wound up and dissolved, it is expedient—

  1. (a) to authorise the issue out of the Consolidated Fund of any increase attributable to the provisions of the said Act of the present Session in the sums authorised to be so issued under section twenty-one of the Cotton (Centralised Buying) Act, 1947;
  2. (b) to authorise the raising of money by the Treasury, in any manner in which they are authorised to raise money under the National Loans Act, 1939, for the purpose of providing, or of replacing in the Consolidated Fund, any increase in those sums which is so attributable;
  3. (c) in the event of the winding up of the said Commission, to authorise—
    1. (i) the cancellation of all or any of the liabilities of the Commission in respect of initial and periodical advances under the said Act of 1947;
    2. (ii) the making good, out of moneys provided by Parliament, of any deficiency of assets resulting from the winding up of the Commission, or, as the case may be, the payment into the Exchequer of any surplus moneys resulting therefrom.—[Mr. Amory.]

4.54 p.m.

Mr. Harold Wilson (Huyton)

I am sorry to bring the right hon. Gentleman the Minister of State, Board of Trade, back to the House a second time on what is really a very small series of points, but we are concerned that this Money Resolution should not pass from the Committee without being quite certain that when we come to discuss the Bill in detail we shall be able to discuss certain very important points, some of which have a very big bearing on the financial responsibilities of this House in relation to the Commission.

I should like to raise two points, about which I gave the right hon. Gentleman notice this morning, both of which arise from this Resolution. The first relates to the provision in the Money Resolution for finance for purposes of compensation. The right hon. Gentleman discussed this at some length during his speech yesterday evening. I should like to ask him whether he would make clear that the Money Resolution is sufficiently wide to provide that the Commission shall not only be able to pay adequate compensation to the two groups to whom I referred last night—those already redundant as a result of the dwindling work of the Commission and those who may become redundant between now and the date when the Order is made—but that also, in accordance with a rather different Clause, the Commission will be able to provide compensation to those who become redundant after the Commission have been wound up but who have been retained in the services presumably of a liquidator, or whatever arrangements are made, for the purpose of clearing up the financial accounts of the Commission. I should be grateful if the right hon. Gentleman could make it clear that that point is adequately covered in the Money Resolution.

The second point is that we shall want to be very sure that there will be no waste of public money in the disposal of the stocks of the Commission. Obviously I shall not press the right hon. Gentleman now to tell us what arrangements have been made for disposal. That, presumably, will come at a later stage in the Bill. But I want an assurance that the Resolution provides sufficient cover to satisfy ourselves on behalf of the House and the public purse that we can establish the safeguards necessary to ensure that there is no waste of public funds in the disposal of these stocks.

4.56 p.m.

The Minister of State, Board of Trade (Mr. Heathcoat Amory)

I should like to thank the right hon. Gentleman the Member for Huyton (Mr. H. Wilson) for giving me notice of the two questions that he has raised. I think that I can give satisfactory answers to both. As regards the first question concerning compensation, I can say quite certainly that the Money Resolution gives effect to the proposals in Clause 3 and Clause 4 (2) of the Bill which cover both the categories to which he has referred.

Clause 3 gives the Commission power to pay compensation to those who will have been discharged as a result of a change of policy while the Commission are still there. Clause 4 (2) gives the Minister power to make arrangements for compensation to be paid after the closing down of the Commission. As I mentioned last night, the intention is that the compensation should be payable on the same basis to both those categories of staff who will lose their employment, and it is quite certain that the Money Resolution is wide enough to enable that to be done.

As to the question relating to stocks, it is too early to say exactly what method will be employed. That will depend on many things, including the amount and types of stock that are left when the time comes, but I can say quite clearly that arrangements will be made for disposing of these stocks in whatever way will work out to the best advantage from the point of view of public funds and from the point of view of the industry. They will certainly not be thrown on the market all at once, or in a way which would mean that the best results were not being attained. Later on we shall see what the best arrangements will be, but the Money Resolution provides for these stocks being released under the most sensbile and most advantageous arrangements. I hope that that answers the right hon. Gentleman's two questions.

Mr. H. Wilson

I should like to thank the right hon. Gentleman for those replies. The second answer, particularly, meets all that I could legitimately ask at this stage of the proceedings. Obviously we shall want to debate the matter in greater detail later. There is not only the question of stocks being dumped on the market but that of the danger of any rings growing up for the purpose of depressing the price of public property.

I should like to press the right hon. Gentleman to go a little further on the first question, because there was one point which I raised yesterday of which perhaps he has not quite taken account. He has dealt with the problem of those redundant hereafter, and after the Commission have been wound up. The Bill and the Money Resolution will provide for those who become redundant owing to past acts, because the Bill is retrospective in certain respects. This is a piece of retrospection which I welcome. Will the right hon. Gentleman make it clear that this applies to all three categories, including those who have already become redundant and for whom I understand a compensation scheme has been worked out? Will all three categories get equal treatment?

Mr. Amory

Yes, all three categories: in other words, all who will have lost employment as a result of the change of policy resulting in the contraction of the Commission's business will be included.

Question put, and agreed to.

Resolution to be reported Tomorrow.

Motion made, and Question proposed, "That this House do now adjourn."—[Mr. Wills.]