HC Deb 21 May 1946 vol 423 cc289-90

Considered in Committee under Standing Order No. 69.

[Mr. HUBERT BEAUMONT in the Chair]

Resolved: That, for the purposes of any Act of the present Session to bring the share capital of Cable and Wireless Limited (in this Resolution referred to as ' the operating company ') into public ownership, to provide for the cost of making certain payments to the operating company in connection with reductions in its charges and for purposes connected with the matters aforesaid, it is expedient to authorize—

  1. (a) the charging on the Consolidated Fund, in connection with the provision of compensation to the companies specified in the said Act as the holders of the shares thereby transferred—?
    1. (i) of the principal of and interest on Government stock to be issued to them under the said Act, any expenses incurred in connection with its issue or repayment arid any remuneration payable in respect of its management; and
    2. (ii) of sums payable to them under the said Act by way of interest, at such rate or rates as the Treasury may determine, on such compensation for the period beginning with the date of transfer of the shares and ending immediately before the date of issue of the said stock;
    the total value (as determined by the Treasury) of the said stock at the date of issue, and the amount on which such interest is payable, to be (in default of agreement) equal to the total value of the shares transferred at the date of transfer, and the value of the shares to be assessed as a proportion of the price which the operating company's undertaking would realise on sale on the basis of its net maintainable revenue and the number of years' purchase to be applied thereto, but without regard to the effect on that revenue of the said Act or of the Bermuda agreement therein mentioned;
  2. (b) the raising by the Treasury, in any manner in which they are authorized to raise money under the National Loans Act, 1939, of money for the purpose of providing any sums required by them in order to redeem the said stock;
  3. (c) the payment out of moneys provided by Parliament—
    1. (i) of the remuneration and expenses of any tribunal set up under the said Act to assess (as mentioned in paragraph (a) of this Resolution) the total value of the shares transferred by the said Act; and
    2. (ii) any sums required for the purpose of any undertaking given by the Treasury, in consideration of the operating company's reducing its charges, as to the making of payments to the operating company in respect of net loss of revenue consequent on the reductions;
  4. (d) the payment into the Exchequer of any dividends on the shares transferred by the 290 said Act paid by the operating company after their transfer, the issue out of the Consolidated Fund of sums so paid into the Exchequer and the application of sums so issued in payment of interest otherwise payable out of the permanent annual charge for the National Debt."—(King's Recommendation signified.)—[Mr. Dalton.]

Resolution to be reported Tomorrow