§ 41. Mr. WELLOCKasked the Minister of Transport whether he is aware that many electricity distributing companies which enjoy monopoly powers in addition to paying reasonable dividends distribute large reserves in the form of bonus shares; and whether, in view of the high cost of electricity in many areas, he will inquire into the matter?
§ Colonel ASHLEYI am aware that certain electricity distributing companies have capitalised their undistributed 200 profits. As regards the last part of the question, I would remind the hon. Member that it is open to the local authority concerned or the consumers, if they are of opinion that a company's profits are excessive, to apply for a reduction in the maximum charges authorised by the Act or Order relating to the particular undertaking.
§ Mr. WELLOCKSeeing that reports have to be sent in by all these companies, have not the Commissioners, under the right hon. and gallant Gentleman, power to deal with them?
§ Colonel ASHLEYIf a local authority or a certain number of consumers—I think 20—consider that the price they are charged is too high, they can appeal to me to hold an investigation, and I am empowered to deal with it, and no doubt in an appeal of that sort the fact that there had been a bonus distribution of shares would be taken into consideration.
§ Mr. WELLOCKHas not the right hon. and gallant Gentleman power to intervene without the intervention, first, of the local authority?
§ Colonel ASHLEYNo, it must come from the local authorities.