§ Mr. HOHLERasked the Parliamentary Secretary to the Ministry of Munitions why the profit balance on trading accounts, namely, £51,000,000, has been appropriated in aid of his Department and not paid over to the Treasury; and, if this had been done as promised by him in introducing his Estimate, what is the debit balance on the administration of his Department for the half-year ending the 30th September last?
Mr. J. HOPEAs I stated in my answer to my hon. Friend on 17th November, the sum of £5l,000,000 is in no sense a profit on trading accounts. It is merely the difference between purchases and sales in the current financial year. There was, at 31st March, 1919, a balance of £61,500,000, excess of purchases over sales. I cannot, at present, submit an estimate of what the total profit will be on the trading 1463W accounts. The sum of £51,000,000 has not been, and cannot without the consent of Parliament be, appropriated in aid of the expenditure on the Ministry of Munitions Vote.
§ Mr. HOHLERasked the Parliamentary Secretary to the Ministry of Munitions whether the articles or any and which of them on which the profit of £51,000,000 has been made are or were under the control direct or indirect of the Government, either in regard to the source of supply, the right to import or supply, or in regard to the price at which the goods might be sold, or in any other manner; and will he state in regard to which of the goods such control now continues and as to which it hag ceased to exist and when?
Mr. HOPEThe term "control," as applied to the trading operations of the Ministry of Munitions, does not accurately represent the real position. The Government bought the home wool clip and, through the Australian and New Zealand Governments, the wool clips of those Dominions. The contracts in respect of the Dominion clips extend to 30th June, 1920. By these purchases the Government secured the greater part of the wool production of the world, and sales during the War were made at fixed prices, having regard to the total expenses incurred. Since last spring, however, sales by auction have taken place, and after the end of the current month the whole of the remaining stocks will be sold by auction, except as regards sales to other Governments.
As regards kips and hides, practically the whole of the Indian production was bought during the War by the British Government, through the agency of the Indian Munitions Board, and prices for sales have been fixed in a manner similar to those for wool. The Government have ceased purchasing kips and hides since 30th June last, and, as a consequence, the balance of stocks is being liquidated in competition with the supplies coming forward in the ordinary way of trade.
As regards the balance of the trading accounts referred to in the answer given to my hon. Friend on 17th November, purchases were made by the Government, to meet Government requirements of manufactured goods. Comparatively small quantities were acquired in excess of Government requirements, and these were issued at prices which would recoup the expenditure, wherever possible, and in 1464W other cases in competition with commercial supplies. There has, therefore, been no complete control of these commodities and no such control now exists.