§ Sir W. Wakefieldasked the President of the Board of Trade to make a full statement as to the grounds on which he has decided that for the next two years all the flax processing factories in England are to be closed down; and to what extent this development will also necessitate the closing down of the research establishments connected with these factories.
§ Mr. P. ThorneycroftThe Government's decision to close down the home flax scheme over approximately the next two years was made in the interests of economy. The scheme involved the subsidisation of flax production in England and has in recent years given rise to substantial and increasing payments from public funds. Accounts for the current year's operations have not yet been published or presented to Parliament, but the loss seems likely to be over £500,000. It78W is recognised that the continuance of flax production at the present level would provide a useful basis for expansion in an emergency, but the cost is too high to be afforded.
The research establishment connected with the scheme will also be closed down when it is no longer required to assist the operations of the flax factories.