§ Mr. MORSEasked the Minister of Agriculture whether any notice was given by the Government to the farmers and producers of flax in 1920, or at any other date, upon the purchase by the Wessex Flax Factories, Limited, from the Government of the seven flax factories of the change of ownership, that the Government were no longer responsible to the farmers and producers of the purchase price of the flax; what is the nominal amount of the debentures held by the Government Wessex Flax Factories, Limited; and when will the amount be probably received?
§ Mr. BUXTONGrowers of flax were not notified individually by the Government of the sale of the seven flax factories in question to a private company, but the matter was given a considerable 1321W amount of publicity in the local Press at the time. The purchasing company—Wessex Flax Factories, Limited—took over and discharged all contracts outstanding with the Government at the time of the sale, and thereafter for two seasons made direct contracts with growers which contained no suggestion that the Government had in any way guaranteed the purchase price. Growers who entered into such contracts with a private company had no reason for supposing that the Government was in any way concerned with their agreements. The nominal amount of the debentures held by the Government in Wessex Flax Factories, Limited, is £32,500. No payment has yet been made by the receiver and manager to the debenture holders, and none can be made until the receiver is able to dispose of the assets, of which at present there seems little prospect.