HC Deb 06 February 1945 vol 407 cc1895-6
52. Mr. Douglas

asked the Chancellor of the Exchequer whether the whole of the nominal capital of the Finance Corporation for Industry, Limited, and of the Industrial and Finance Corporation, Limited, respectively, will be issued; whether the shares will be fully paid; whether the issue will be subject to the consent of the Capital Issues Committee; and whether loans made by these two companies will be subject to the consent of the Capital Issues Committee.

Sir J. Anderson

The matters raised in the first two parts of the Question are for the decision of the companies concerned when they have been formed. Issues of capital (including issues of securities in the exercise of borrowing powers) by either Corporation will be subject to any Treasury consent required under the regulations or other provisions in force at the time of issue, but the promoters have been informed that such consent will in fact be given. Persons desirous of obtaining finance from either Corporation will need to make application to the Capital Issues Committee for Treasury consent in accordance with the regulations in force for the time being.

Mr. A. Bevan

Are definite regulations and conditions being drawn up for the operation of these companies, before we have a discussion in the House?

Sir J. Anderson

There is no question of regulations being drawn up. These companies will be treated under the ordinary provisions.

Mr. Bevan

Are these companies proposed to be operated and conditions of finance established, before a Debate takes place in this House?

Sir J. Anderson

I do not know. That depends on when the Debate takes place.

Mr. Douglas

Has not the right hon. Gentleman been consulted about the matter referred to in the first two parts of the Question?

Sir J. Anderson

I do not think so. Not to my knowledge.

Mr. Levy

Does the right hon. Gentleman's answer imply that the industrial facilities, so far as banking is concerned, with regard to the two corporations which he has been good enough to set up, are wholly and entirely dependent upon what consent the Capital Issues Committee gives to them? Where does the Treasury come in at all, if the right hon. Gentleman has passed the ball?

Sir J. Anderson

This Committee acts on behalf of the Treasury.

Mr. Stokes

Are we to understand that the Capital Issues Committee is going to function indefinitely after the war?

Sir J. Anderson

That might well be the subject of a separate Question.