Lieut-Colonel GUINNESSasked the Minister of Agrciulture whether his Department in January, 1920, entered into an agreement with various farmers in West Suffolk for the production of flax, and has since then transferred its obligations to a private company; whether he is aware that this private company now proposes to pay farmers for their flax by four months bills; and whether, in view of the inconvenience caused by such a change in an agreed transaction, he proposes to take any steps in the matter?
§ Sir R. SANDERSIn January, 1920, when negotiations were proceeding for the sale of the Ministry's flax production undertaking, the Ministry, in order to meet the wishes of certain farmers who were anxious to have their cropping programme settled, made contracts with them572W for the growing of flax. The fact that the business was about to be transferred to private ownership had already been advertised in the local Press, and it was provided in the growers' contract that the Ministry's rights and liabilities there-under should be assignable. The business was sold as from the 1st February, 1920, and thereafter all arrangements for the new crop, including the supply of seed for sowing, were made between the growers and the purchasers of the factories, namely, Flax Cultivation, Limited, without reference to the Ministry. I am aware that the company has been unable to meet its obligations punctually under the contracts with growers. This is due to the depressed condition of the linen trade, which has made the sale of flax during the last seven months almost impossible even at prices far below the cost of production. I greatly regret the inconvenience caused to individual farmers, but it has been caused by circumstances which the Ministry could not foresee or prevent. However, the outlook has lately improved, and there are good grounds for hoping that the company will be able to meet its liabilities in full.