§ 30. Mr. Thorntonasked the President of the Board of Trade if he will now state how many approved applications under the Cotton Finishing Reorganisation Scheme Orders have been made direct to the Cotton Board; how many have been made through realisation companies; what is the estimated cost to the Exchequer of the closing down and scrapping of production units in the finishing sections; and what percentages will be met by the Exchequer and by statutory levy on the industry, respectively.
§ Mr. N. MacphersonForty-seven approved applications were submitted through Realisation Companies and sixteen direct to the Cotton Board. The Exchequer contribution is expected to be rather less than £2 million. The Government will pay two-thirds of the cost of compensation for closing down units in accordance with the Scheme. The balance will be provided by levy on 1118 the industry which will also take account of other costs of the operation, including the activities of the Realisation Companies. The total amount to be raised by levy will not be known until the Realisation Companies have completed the disposal of the properties acquired by them under the Schemes.
§ Mr. ThorntonIs the Parliamentary Secretary aware that, according to the statement made by a prominent person in the finishing section, the industry will have to raise two-thirds of the cost of scrapping and the Government contribution will be one-third? Is the hon. Gentleman aware that this means that the average prices paid have been twice the figures set out in the formula established in the Order? Does not this lead one to believe that it may have been the effective and efficient competition that has been bought out rather than redundant plant?
§ Mr. MacphersonThe terms of the scheme are quite clear. The Government's contribution is two-thirds, related to the standard terms of compensation laid down in the Order. The realisation companies were allowed to pay such prices as they thought fit. We shall have to wait to see how the proportion works out. It is not possible to forecast at present.
§ Mr. ThorntonCan we be assured that this House will be informed of the amount that is being raised from the industry by the statutory levy authorised by this House? If it is twice the amount of the formula laid down in the Order, the House certainly should be advised of the fact.
§ Mr. MacphersonI shall certainly take note of what the hon. Member has said. The provision for the levy to be made has already been provided for in the Order and it can now be made by the industry itself. If the hon. Member wishes to know the figure, I shall willingly try to ascertain whether it would be proper for me to reveal it to the House or whether it would be better for the industry itself to make it known.