HC Deb 12 July 1922 vol 156 cc1215-6
36. Sir W. SEAGER

asked the Parliamentary Secretary to the Ministry of Transport if he is aware that part of the issued capital of the Notting Hill Electric Lighting Company, Limited, consists of 27,050 ordinary (recently renamed deferred) shares, fully paid, of one shilling each; that for the year 1921 the wages of the employés were reduced, the charges for current supplied to consumers were maintained at the maximum permitted, and the dividends on the ordinary shares were the highest ever paid, being at the rate of more than 1,150 per cent., less tax; and, seeing that the company is a public utility company with a monopoly, will he cause representations to be made to the company that, in the public interest, the payment of such dividends is to be strongly deprecated and that the question of the reduction of charges should be seriously considered?

The PARLIAMENTARY SECRETARY to the MINISTRY of TRANSPORT (Mr. Neal)

I have looked carefully into the financial arrangements of the company mentioned in the question. The deferred shares represent less than half of 1 per cent. of the total share and loan capital, and are held in conjunction with the preferred shares, and the dividend paid on them taken alone is no true index of the return to the investor. The company has, however, had a successful year's trading, and, I am informed, made a reduction in their charges as from 30th June last of 6½ per cent. for lighting and 12 per cent. for power. They propose to consider the question of a further reduction as soon as the results for the current year are known. The Minister has not made any Order in respect of the charging powers of this company, nor has any representation been received from persons or authorities on this subject.

Sir W. SEAGER

Has the Ministry the power to vary the maximum price charged to the public?

Mr. NEAL

On proper representations being made under Section 32 of the Electric Lighting Act, 1909, which, I think, will be amended by the Bill now before Parliament.