HC Deb 17 March 1953 vol 512 cc2042-4
12. Mr. Jay

asked the Chancellor of the Exchequer whether, in view of the increased dividends being offered by firms, details of which have been sent him, he will make a further statement on the steps to be taken to enforce the Government's policy of dividend restraint.

Mr. R. A. Butler

I would refer the right hon. Gentleman to the reply which my right hon. Friend the Economic Secretary gave to my hon. Friend the Member for Lough (Mr. Osborne) on 19th February.

Mr. Jay

While welcoming the Chancellor's return from his travels, may I ask him whether he has noticed what has been going on while he was away? Does he think that offers of dividends of 180 per cent. are conducive to general restraint or to the struggle against inflation?

Mr. Butler

To show how singularly well informed I am, the actual figure should be 187½ per cent. I was aware of the right hon. Gentleman's interest, even in my absence. But I would say seriously that it remains the policy of Her Majesty's Government that there should be continued and voluntary restraint, and I hope that remark will be apprehended in certain quarters.

Sir W. Smithers

Will the Chancellor take note that if dividends are artificially restricted, this removes the incentive to put capital into businesses, and if the so-called policy of the Socialist party of "fair shares for all" is carried out there will soon be nothing left to share?

Mr. Butler

I would answer my hon. Friend by saying that there is no question of artificial restriction.

Mr. Blenkinsop

Is the right hon. Gentleman aware that the declaration of dividends like these causes real bitterness amongst the workers on the North-East Coast of England who, after all, have to work for their living?

Mr. Nicholson

Is my right hon. Friend aware that the best way to encourage restriction of the amounts distributed by way of dividend is to give firms some inducement to put money into reserve?

Mr. Gaitskell

Is the right hon. Gentleman aware that so long as he continues to carry out the policy of the Labour Government on dividend restraint, he will receive full support from this side of the House against the serried ranks behind him?

Mr. Butler

All I can say in answer to the right hon. Gentleman is that we have not so far made, and I hope we never shall make, the error of falling into the artificial system which he himself contrived.

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