§ 3. Lieut.-Commander KENWORTHY
asked the Lord Privy Seal to what extent he was consulted prior to the formation of the Bankers' Industrial Development Company, Limited, for the facilitation of rationalisation of certain basic industries; whether he will be kept informed and consulted as to the future policy and activities of this company; what measure of control he will be able to exercise over its actions and in what manner schemes approved are to be financed?
I have been and shall continue to be, in close touch with this and other steps directed towards the rationalisation of industry. As regards control, I can have no control, the Bankers' Industrial Development Company being a private limited company, but there are a number of ways in which I am co-operating with those in industry who are prepared to adopt a progressive policy. As regards the last part of the question, I would refer my hon. and gallant Friend to the penultimate paragraph of the reply which I gave him on 15th April.
§ Lieut. - Commander KENWORTHY
While thanking the right hon. Gentleman for that answer, may I ask if he is aware that this company, if what we are told of it is true, is probably the most important step taken for a very long time; and will he be in a position to inform us, firm time to time, as to how it develops and how it is getting on with this important work?
Certainly. I attach considerable importance to it, and I shall certainly infirm the House about it.
§ 6. Mr. ALBERY
asked the Lord Privy Seal with reference to the Bankers' Industrial Development Company, Limited, what differences there are between the A and B shares; what arrangements have been made as regards the distribution of any profits which may 12 accrue; whether the directors are to receive any remuneration; and, if so, what remuneration?
In order to answer this question fully it is necessary to enter into considerable detail. I will, therefore, with the hon. Member's permission, circulate the reply in the OFFICIAL REPORT.
§ Mr. ALBERY
Can the right hon. Gentleman inform the House in any greater detail of the manner in which he proposes to "co-operate with this company?
In an answer to a question I could hardly do so, but broadly, a number of schemes are submitted to me daily, some of which involve new finance and some the reorganisation of existing finance. The object of this corporation will be the examination of these schemes, and, if they are considered worthy of support, they will be submitted That is the procedure in broad outline.
§ Lieut. - Commander KENWORTHY
Will the right hon. Gentleman pass along these likely schemes to this company?
§ Following is the reply:
§ The "A" shares will carry one vote per share and the "B" shares three votes per share. The holders of the "A" shares and the "B" shares will be called upon rateably to pay from time to time, as required, to the extent of 25 per cent. of the nominal amount of their shares. The remaining 75 per cent. will form a reserve liability, and will only be capable of being called up in a liquidation, and then any money required must first be obtained by calls in respect of the "B" shares until they are fully paid before any call is made on the "A" shares. It is not intended that the company should operate for profit, but any profits earned which it may be determined to distribute by way of dividend will be distributed amongst the holders of the "A" and "B" ordinary shares rateably in proportion to the amount paid up on their shares. The directors are giving their services gratuitously. For further information, I would refer the hon. Member to the Articles of Association.