HC Deb 12 February 1953 vol 511 cc71-2W
Mr. Hurd

asked the Minister of Food if agreement has now been reached with the Queensland Government to wind up the affairs of the Queensland British Food Corporation.

Major Lloyd George

Yes. The Queensland Government and I have decided to accept the recommendations made to us by the Corporation in their report of 4th August last. The Corporation recommend that as they can foresee no commercial future for the scheme in its present form, the large scale cultivation of crops should be abandoned until a satisfactory agricultural technique has been established on a farm scale. They suggest that the experimental work for which this calls should be under local direction and not under the direction of a Corporation responsible to two Governments which is under statutory obligation to operate commercially.

The Queensland Government and I are agreed that the attempt to intensify agricultural production in Central Queensland will best be served by accepting the Corporation's report. The Corporation will accordingly be wound up with retrospective effect from 30th September, 1952, the end of the last financial year, and work undertaken after that date will be the responsibility of the Queensland Government.

All the assets and liabilities of the Corporation at the date of its winding up will be transferred to the Queensland Government who, in return, have undertaken to pay to the United Kingdom Government a sum of f960,000 sterling which represents the United Kingdom's share of the estimated net realisation value of the Corporation's assets at the date of transfer. The Corporation have met in full up to 30th September, 1952, the interest on the sum of f1,500,000 advanced to them by the United Kingdom Government so that the total loss falling on the Exchequer will be f540,000. In order to prevent undue strain on the Queensland Government's resources the United Kingdom have agreed to accept payment of the sum due to them over a long term.

Full details of the decisions reached are set out in a White Paper (Cmd. 8760) published yesterday. The Corporation's report and the report of the Primrose Committee which advised them are contained in an annex to the White Paper.