Concentration of Industry (Compensation)

Oral Answers to Questions — Trade and Commerce – in the House of Commons on 8th September 1942.

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Photo of Sir Geoffrey Mander Sir Geoffrey Mander , Wolverhampton East

asked the President of the Board of Trade the number of compensation schemes in operation under the concentration of industry; and the precise basis on which these are arrived at?

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

Twenty compensation schemes covering whole industries or large sections of industries have been approved. These vary widely in character. Usually there is a central fund raised by levy on the machine-capacity or the turnover of the nucleus firms, and from this fund the closing firms draw compensation. This compensation has to be applied first to the care and maintenance of the plant and machinery of the closed firms. For the rest of the concentrated industries numbering 36, there are no central compensation schemes, and the normal practice is for the nucleus firm to produce goods at cost for the closing firm which continues as a selling organisation.