HC Deb 03 March 1960 vol 618 cc1412-4
29. Mr. Thornton

asked the President of the Board of Trade if he will give an assurance that before premium payments are made for scrapping machinery under the Cotton Industry Act, 1959, a thorough tracing of the majority shareholding will be made.

Mr. J. Rodgers

The Cotton Board will take this and any other steps it considers necessary to satisfy itself that applicants have fully complied with the prescribed conditions.

Mr. Thornton

While in no way casting any reflection on the Cotton Board, which carries out its difficult duties with its usual efficiency and concern, will the Parliamentary Secretary encourage the Board to make a thorough tracing in what appear to be doubtful claims for premium payments, even when that means tracing back to holding companies and further companies which hold all the shares of the holding companies, as in the case of the details which I have submitted to him? Further, is the hon. Gentleman satisfied that there is no danger of a practice developing by which shares are transferred within a family to maintain a claim for premium payments?

Mr. Rodgers

As the hon. Gentleman knows, no premium payments have yet been made. I share the hon. Gentleman's view of the importance of avoiding any abuse in the payment of this compensation, and both the Cotton Board and my right hon. Friend will watch the point very carefully.

30. Mr. Thornton

asked the President of the Board of Trade if he will make a statement on the cases of compensation for scrapped machinery under the Cotton Industry Act, 1959, details of which were sent to him on the 17th February, 1960, by the hon. Member for Farnworth.

Mr. J. Rodgers

These cases are still under consideration by the Cotton Board, and no payments will be made until it is fully satisfied that the applicants have fully complied with the conditions prescribed in the Reorganisation Scheme.

Mr. Thornton

Will the Parliamentary Secretary use his influence with the Cotton Board to have these cases investigated, because there is some concern that attempts are being made by a minority to observe not the spirit but the letter of the law? Will he watch these points not only to maintain the public interest, but in fairness to the majority of beneficiaries under the Cotton Industry Act, 1959, whom I am sure will observe the spirit as well as the letter of the law?

Mr. Rodgers

I appreciate what the hon. Member is after, but it is a matter for the Cotton Board, to whom I have passed on the information which the hon. Gentleman was good enough to provide us with. As I told him, his information does not entirely conform with that in the possession of the Cotton Board, but in any case no decision to pay premium rate compensation in these or any other cases has yet been made.

Sir J. Barlow

Is my hon. Friend aware that the cotton redundancy scheme as a whole is working extraordinarily well in the spinning and weaving sections, but that the industry would appreciate schemes for the finishing section, which have not yet been announced and which are probably overdue?

Mr. Rodgers

I appreciate what my hon. Friend says. I understand that negotiations are going on between the Cotton Board and the finishing section of the industry.