§ Sir F. WISEasked the Minister of Agriculture the total cash amount the Government has invested in the Kelham Sugar Factory; and what is the estimated value of the investment to-day?
Mr. GUINNESSThe total cash invested by the Government in the company, Home-Grown Sugar, Limited, who own the Kelham Beet Sugar Factory and the Kelham Estate, is as follows:
- (a) £250,000 in ordinary shares of £l each, fully paid. These shares, together with ordinary shares of a similar amount held by the general public, were reduced in 1923 to 250,000 shares of 5s. each, which sum, namely, £62,500, may be taken as their present value.
- (b) £124,950 on mortgage ranking after prior mortgages of £l26,538, and secured upon the factory and estate, valued at
998 £397,463. Having regard to the fact that the company is now working at a profit and all mortgage interest has been paid in full to the last due dates, the sum of £124,950 may be taken as the present value of this investment. - (c) £32,231 has been advanced to meet the Government's guarantee of dividend upon the ordinary shares in the company held by the general public. Since the financial year ended 31st March, 1923, no further call upon the Government's guarantee has been made. This sum, with interest at 5 per cent. per annum, is repayable by the company out of future profits, after paying dividend limited to 5 per cent. upon the public shares and after the necessary provision for depreciation and reserve. This may be taken also at the value stated in the footnote to the balance sheet of the company contained in White Paper No. 163 of 5th August, 1925, namely, £36,568. The reduction of the share capital held by the general public (see (a) above) relieves the Government of its guarantee of dividend until 31st March, 1930, upon £187,500 being three fourths of the original subscribed value of the public shares.
The total cash amount the Government has invested in the Kelham Beet Sugar Factory is therefore £407,181, and the estimated value of the investment to-day £224,018.