Clause 1. — (Power to Treasury to make advances to certain companies.)

Part of Orders of the Day — North Atlantic Shipping Bill. – in the House of Commons at on 14 March 1934.

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Photo of Sir Stafford Cripps Sir Stafford Cripps , Bristol East

The British Government is coming in to the tune of £9,500,000. We are told that one of the purposes is to get the Blue Riband of the Atlantic. The fact that, although there is not a Government director, the suggestion has been made, seems to show that it does not depend on a Government director. That is really a bogey that should not have any effect as regards the decision on this point. The Chancellor of the Exchequer says that if there were military or strategic reasons we ought to have representation on the board. But there is a very vital financial interest here, and the amount of money that goes to the use of the merger company will depend on what happens to the merger company. We are not going to give them the whole of the £9,500,000 on the first day, but presumably as it is required, according to the circumstances of the company. The interests of the directors of the company may well be to get as much as they can, and the interests of the State may well be to get them to finance themselves as much as they can without drawing on it. In those circumstances, surely it is wise for the Government to see that, while this money is not fully advanced, it is desirable for the Government to have someone who is in intimate contact with the proceedings of the board of the company, in order that they may consult with the Government and assist in directing the company's policy as regards further advances from time to time. I presume that the Government will have some say as to whether the second ship is to be built, as judged from the success of the service. Surely it is vitally essential that, where the interests of the Government in advancing the money, and of the company in getting it, may clash, the Government should have its own independent adviser to be its own independent director on the board of the company.

I am sure that no one would imagine that one director out of the 10 would direct the policy of shipping. That would be perfectly well understood, as well as the fact that the Government, having this very large financial interest—which might be more or less as the time goes on—would be right in saying, "We want independent advice regarding the proceedings of this company, and we can only get it by having our representative on the board." It is a perfectly proper protection, in the case of so large a sum of money, that the Government should have this advice.