asked the Financial Secretary to the Treasury whether consent has been given to an advance or a guarantee of £365,000 to William Beardmore and Company, Limited, under the Trade Facilities Act, to enable this company to construct and place on the streets of London and other places a number of new taxi-cabs; and how many cabs are to be provided out of this money?

Mr. GUINNESS:

The Treasury have agreed to guarantee under the provisions of the Trade Facilities Acts a loan of £350,000 to be raised by the Beardmore Taxi-cab Company, Limited, to enable them to buy and place on the streets of London a number of new taxi-cabs which will be built by Beardmore (Paisley), Limited. The number of cabs that will be so provided is about 750.

Will these cabs replace existing cabs or be in addition to them; and is the right hon. Gentleman aware that many of the owner-drivers at the present time have great difficulty in making their cabs pay owing to the number on the streets?

Mr. GUINNESS:

I am advised that these cabs, generally speaking, will be in place of obsolete cabs. The normal wastage is estimated at about 500 cabs a year, which is the rate of supply under the proposed arrangement.

For what period is this advance being made?

Mr. GUINNESS:

I should like notice of that question.

Was the Treasury satisfied that there was really a demand for this excessive number of cabs, and that they could not be provided by the existing cab companies?

Mr. GUINNESS:

I am advised that there is this demand in order to replace the wastage. The Trade Facilities Committee were satisfied that the only alternative to this arrangement was that the order would go to French, Italian and American firms.

Sir F. HALL:

May I ask whether any assistance is likely to be given to the men who are called owner-drivers? Will they have any assistance granted them to enable them to procure their cabs to run on the London streets?

Are the Trade Facilities Committee assisting Messrs. W. Beardmore and Co. to set up a huge combine against the owner-drivers with the aid of public money?

Is the right hon. Gentleman aware that these guarantees are not merely as to capital but also as to interest, and does he consider that what is practically a guarantee of dividend is an inducement to this firm to put forward their best efforts?

Mr. GUINNESS:

The conditions of the guarantee satisfied the eminent business men on the Trade Facilities Committee.

Sir F. HALL:

Will the right hon. Gentleman reply to my question?

Are these business men shareholders in Messrs. William Beardmore and Company?