HC Deb 18 May 1915 vol 71 cc2123-5
23. Mr. MacCALLUM SCOTT

asked the Chancellor of the Exchequer whether he is aware that the Treasury has no power to prevent the registration of a new joint stock company, in regard to which it has refused to approve the issue of the capital with which it proposes to operate; and whether he proposes to ask Parliament for powers to prohibit the issue of such capital?

48. Mr. MacCALLUM SCOTT

asked the Prime Minister whether he proposes to introduce legislation with the object of controlling the issue of fresh capital in this country without the approval of the Treasury?

Mr. LLOYD GEORGE

I will answer together Question 23 and Question 48 addressed to my right hon. Friend the Prime Minister. The Treasury have no legal power to make their disapproval of fresh issues of capital effective, and the Government do not propose to seek such power at the present time. I do not, however, consider it probable that in present circumstances promoters will persist in prospectuses of which the Treasury have expressed disapproval, or that if they do persist such prospectuses will be supported by the public. Should they do so, the question whether any advantage they may thereby obtain over those who have been content to be guided by the rules laid down should not be counterbalanced by special fiscal burdens will not fail to receive careful consideration.

Mr. MacCALLUM SCOTT

Is the right hon. Gentleman aware that this operates very unfairly to small companies which are being floated and which do desire to observe the restrictions placed upon them by the Treasury, whereas others may not be so scrupulous and may not observe these restrictions?

Mr. LLOYD GEORGE

If my hon. Friend will read my answer carefully he will find that I do indicate what should be done.

Sir A. MARKHAM

Will the right hon. Gentleman say whether, when no appeal is made to the public and those companies are being floated, they are to be prejudiced?

Mr. LLOYD GEORGE

That question has been considered by the Committee on issues, and I am not sure at the present moment what their decision is. Perhaps my hon. Friend would put it down. I would rather not answer without considering it carefully.

Mr. HOGGE

Can my right hon. Friend state whether this Committee of the Treasury has any statutory powers?

Mr. LLOYD GEORGE

That is in the answer I gave to my hon. Friend.

Mr. HOGGE

Then the answer is "No."