HC Deb 17 November 1955 vol 546 cc762-3
24. Lieut.-Colonel Lipton

asked the Chancellor of the Exchequer whether he will define the duties of the Government directors on the Board of the British Petroleum Company in relation to Her Majesty's Government and the company, respectively.

9. Mr. Collins

asked the Chancellor of the Exchequer the names of the two Government-appointed directors of British Petroleum Limited; what salary they receive from Her Majesty's Government: when they were appointed; what are the conditions of appointment; and what instructions were given to them on appointment.

Sir E. Boyle

Mr. F. E. Harmer and Sir Gordon Munro are the present Government directors. They receive no remuneration from public funds, but keep the fees received by them as directors of the company and its subsidiary companies. Mr. Harmer was appointed on 8th May. 1953, and Sir Gordon Munro on 26th April, 1954. In each case the appointment was for four years in the first instance. They have a general obligation to report on all matters, financial or general, which they consider should be referred to, or brought to the notice of Her Majesty's Government, and the only instruction given to them on appointment was with regard to the channel through which such reports should be submitted. In addition, they carry out the normal duties of company directors in exactly the same way as the other directors of the company.

Lieut.-Colonel Lipton

In view of the fact that these gentlemen say that the Government take no active part or interest in the commercial management of the British Petroleum Company, and in view of the fact that their duties are based upon the very out-of-date assessment which was defined in 1914, is it not rather excessive that each of these gentlemen should draw fees to the amount of £3,250 a year from this company in view of the rather negligible duties they are called upon to perform vis-à-vis Her Majesty's Government?

Sir E. Boyle

The hon. and gallant Member is really under a misapprehension in thinking that Government directorships are sinecures. That is not true. Government directors play their part in all matters affecting the company's affairs in exactly the same way as other directors.

Mr. Gaitskell

What report did they submit on the question of the very large increase in the dividend paid by the British Petroleum Company a day after the Budget in complete contradiction to the Chancellor's own request?

Sir E. Boyle

In answer to that question, I can only refer the right hon. Member to the reply given by my predecessor, now the Minister of State, to the hon. Member for Uxbridge (Mr. Beswick) on 27th November, 1952, when he said: I regret that I cannot disclose information about communications which pass between Her Majesty's Government and their representatives."—[OFFICIAL REPORT. 27th November, 1952; Vol. 508, c. 610.]

Lieut.-Colonel Lipton

In view of the unsatisfactory nature of that reply, I beg to give notice that I shall endeavour to raise the matter on the Adjournment, or perhaps on the Finance Bill.