HC Deb 20 January 1953 vol 510 cc22-3
32. Mr. Jay

asked the Chancellor of the Exchequer to make a statement on the Government's policy towards increases of dividends by companies.

Mr. R. A. Butler

The Government's policy towards dividends remains the same as that which I explained to the House on 7th November, 1951, when I spoke in the debate on the Address.

Mr. Jay

As so much more of the taxpayer's money has been spent on Treasury Bill interest, will the right hon. Gentleman say whether he regards the increase in dividend by the National Provincial Bank as in accordance with Government policy?

Mr. Butler

There is a Question or, that which comes next, and, therefore, I do not think that I ought to answer the right hon. Gentleman.

Mr. Jay

Cannot the Chancellor say now? It is a perfectly simple question: does he regard that as in accordance with Government policy, or not?

Mr. Butler

I do not know, Mr Speaker, whether I should be in order in answering a Question which is coming next. If I am in order, I will certainly say to the right hon. Gentleman that I have no intention whatever of—

Mr. Speaker

As the next Question covers the same ground, perhaps the hon. Member who put it down ought to be allowed to ask it.

33. Mr. Anthony Greenwood

asked tile Chancellor of the Exchequer if he will take steps to ensure that joint stock banks do not increase their dividends without his approval.

Mr. R. A. Butler

No, Sir.

Mr. Greenwood

With the permission of my right hon. Friend, may I ask the Chancellor of the Exchequer whether, in view of the fact that the cost of living has increased during the past year and the Chancellor is calling upon the work-people to exercise restraint in their wage demands, he does not think that it is most unhelpful of the National Provincial Bank to increase its dividends?

Mr. Butler

I have nothing to go back upon in the statement I made in the debate on the Address regarding the general attitude of the Government towards the importance of restraining dividend policy, but I am not going to put myself in the position of criticising or attempting to control the activities of the National Provincial Bank.

Mr. Greenwood

Does the right hon. Gentleman really think that he should appeal to trade unionists to exercise restraint when he is not prepared to make any appeal to the banks?

Mr. Butler

The hon. Member is rather exaggerating. I have already said that I adhere to the statement which I made for the Government that restraint in dividend policy is desirable, but I am not prepared to answer the hon. Member by saying that I will take steps to ensure that the banks do not increase their dividends, because I do not desire to take steps.

Sir H. Williams

Is it not the case that the purchasing value of the dividend recently declared by the Bank is half of the dividend that they declared in 1939?

Mr. Butler

I should not like to give an exact answer to that.

Mr. Paget

Does the Chancellor of the Exchequer really think that it is fair to take off food subsidies in order to give them to the banks in increased Treasury Bill interest and then to have the banks hand it on in increased dividends?

Mr. Butler

If the hon. and learned Member believes that sort of clap-trap, he will believe anything.

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