§ Motion made, and Question proposed. "That the Clause stand part of the Bill."
§ 4.45 p.m.
§ Mr. Gaitskell
I think we should have a word on this Clause, although I do not anticipate that there will be any disagreement about it. The purpose is, I understand, to enable investment trusts to carry forward management expenses which exceed the amount of the investment income. There must be few such cases, for I should consider it a bad investment if that were not so. But I do not know whether the Economic Secretary has discovered any such cases since the publication of the Millard Tucker Report.
§ Mr. Maudling
I will gladly accede to the request of the right hon. Gentleman, especially as he has already explained the purpose of this Clause far more adequately than I can. The purpose of it is to allow investment trusts, and, in particular, insurance companies, to carry forward any excess of management expenses. It is another recommendation of the Millard Tucker Committee. I would not care to give examples, nor would I say that a decline in investment income is always a sign of inefficiency, because there are political and economic considerations which may well affect the income of such companies.
§ Question put, and agreed to.
§ Clause ordered to stand part of the Bill.