§ Mr. Brookeasked the Parliamentary Secretary to the Ministry of Food whether any alterations are proposed to be made in the method or extent of Government assistance to the British Sugar Corporation?
§ Mr. JohnstoneThe Sugar Industry (Re-organisation) Act, 1936, requires the Minister of Agriculture and Fisheries to prescribe a rate of assistance to the Corporation for any year based on the results achieved in earlier years and on a forecast of changes in cost and prices during the year of assistance. This procedure is not well adapted to war-time conditions and the production of sugar is now the concern of the Ministry of Food. Accordingly it is proposed that at the end of the year 1940–41, and any subsequent war year my Noble Friend shall determine with the concurrence of the Treasury the amount of the loss properly incurred by the Corporation on revenue account in that year and shall pay to the Corporation a sum equal to the loss so determined. In computing the loss incurred by the Corporation in any such year, it is proposed to include provision for an amount equal to interest for that year at such rate as the Treasury consider reasonable on the issued ordinary share capital of the Corporation.
As the Corporation will in effect be in receipt of a deficiency payment, it is necessary to make advances to the Corporation during the beet campaign in order to finance the beet crop. Further, as it will be more than ever imperative to ensure that the Corporation carries on its business in war time with the highest practicable standard of efficiency, it is proposed, subject to the consent of the Treasury, to enter into an agreement with the Corporation providing for the payment to the Corporation of an agreed proportion of any savings in the cost of assistance attributable to economies effected by the Corporation. As regards the procedure for giving effect to these proposals, my Noble Friend is advised that it is unnecessary to supplement his general powers by legislation.