HC Deb 11 December 1919 vol 122 cc1637-9W

In 1918 the War Department guaranteed a sum not exceeding £600,000 in respect of the administration by the Flax Society, Limited, of a scheme for additional flax production in Ireland in 1918, in respect of which a guarantee of £200,000 had already been given by the leading firms and companies engaged in the linen trade. Two nominees of the War Department were appointed to the board of the society with a right to veto any proceedings of the board to which they object. The profit or loss accruing on the society's administration of the scheme will be shared to the extent of three-fourths and one-fourth respectively by the War Department and the other guarantors. The operations of the society have, in fact, been much less extensive than was originally contemplated, and the maximum amount for which His Majesty's Government can be called on under the guarantee has, in consequence, been reduced to £300,000. Figures are not yet available of the results of the working of the scheme.

The Board of Trade renewed this guarantee to the society in respect of the year 1919 on a reduced scale. Under the guarantee for that year the Government guaranteed only half of the total sum (£400,000) guaranteed by the Government and the linen trade jointly, and the profit or loss accruing on the administration of the scheme for 1919 will be shared equally by the Government and the linen trade. As in 1918 the scheme administered by the society has proved to be less extensive than was contemplated, and the maximum for which the Government can be called upon in respect of the scheme in 1919 has consequently been reduced to £100,000. The results of the working of the scheme for 1919 are not yet available.

The names of the directors of the Flax Society are as follow:

Grants from the Development Fund for experiments in the cultivation and preparation of flax have been made up to the 30th September, 1917, to the University of Leeds and the British Flax and Hemp Growers' Society, a society registered under the Industrial and Provident Societies Act as an association not trading for profit. The totals advanced to those bodies were £5,829 to the university and £22,463 to the society up to the 30th September, 1917. In the two years subsequent to that date further Grants amounting to £1,130 have been made to the society for seed trials.

The members of the committee of the Society are as follow:

Further information regarding the Government's operations in flax will be found in the reply given to the hon. Member by the Parliamentary Secretary to the Board of Trade on 3rd June last.

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