HC Deb 10 February 1955 vol 536 cc2036-7
12. Mr. Marquand

asked the Chancellor of the Exchequer what proportion of the securities vested in the Iron and Steel Holding and Realisation Agency has been sold up to date.

Mr. H. Brooke

The book value of the securities taken over by the Agency was £252 million. Gross proceeds from realisation so far amount to £124 million. But the securities sold by the Agency cannot be expressed as a proportion of the securities taken over because of developments in the meantime: in particular, capital reorganisations and additional investment in companies by the Agency.

Mr. Marquand

At this rate of disposal, how much longer does the hon. Gentleman estimate that the Agency will take to complete the work laid upon it by Statute?

Mr. Brooke

I should not like to give any estimate but I should have thought that the Agency has been getting on fairly well lately.

Mr. Marquand

May I conclude from that reply that the Agency will remain responsible for rather more than half the steel industry, so far as this Government are concerned, for the remainder of the term of the present Government?

Mr. Brooke

I said in my original answer that these figures could not be properly interpreted as a proportion of the securities taken over.

Mr. Gaitskell

Can the hon. Gentleman say what proportion of the equities has been sold?

Mr. Brooke

Not without notice.

13. Mr. Marquand

asked the Chancellor of the Exchequer what methods are used by the Iron and Steel Holding and Realisation Agency to effect changes, when deemed necessary, in the composition of boards of directors of companies the securities of which are vested in the Agency.

Mr. H. Brooke

The Agency would effect any changes they consider necessary by exercising their rights as shareholders.

Mr. Marquand

Do the Agency, then, take responsibility for all changes which have been effected? Do they ascertain the reason for any director's dismissal and satisfy themselves whether that is a right and proper course to take?

Mr. Brooke

I do not know about directors who have been dismissed, but when a director resigns it is not necessarily the business of the Agency to inquire why he has resigned.

Mr. Marquand

As we are alluding to a case of which the hon. Gentleman has knowledge, would he not agree that when a director, having resigned, says that he was forced to that position by the bad senior administration of the board, the Agency should look into it?

Mr. Brooke

The right hon. Gentleman may have greater knowledge of this matter than I have. Speaking for the Agency, I do not think that I should assume for them responsibilities in regard to resignations which, so far as I am aware, have been voluntarily offered.

Mr. Chetwynd

Is it the duty of the Agency, however, to approve the successor of this person?

Mr. Brooke

As I said in my original answer, the Agency possess and retain their ordinary rights as shareholders.