HC Deb 22 February 1956 vol 549 cc361-2
17. Mr. Teeling

asked the Secretary of State for Foreign Affairs if he is aware that the Brazilian Government have reduced the rates for electricity to be charged by Pernambuco Tramways and Power Company Limited, as from 17th January, 1956, to an extent which makes it impossible for the company to pay the interest on its mainly British-held debentures; that this is the only public utility company which has been instructed to reduce its rates; that this reduction does not accord with the fair treatment promised by President Kubitschek to foreign capital invested in Brazil during his recent world tour; and whether he will make representations to the Brazilian Government to ensure that the rates are fixed at a level which will give a fair return to the invested capital.

Lord John Hope

Practically the entire share capital of this company is held by a United States registered company and the British interest is confined to debenture holdings. In the light of discussions now in progress between the company and the competent Brazilian authorities, the new Brazilian Administration will, no doubt, give careful consideration to the desirability of rectifying the situation that has lately arisen. In these circumstances, my right hon. Friend does not feel justified in instructing Her Majesty's representative at Rio de Janeiro to approach the Brazilian authorities.

Mr. Teeling

Does my noble Friend realise that this company is registered in this country; that most of the debenture holders are British; that they have received no interest whatsoever since 1946, whereas there have been very considerable profits for the company; and that that would be a point to help us to try to get some money for this country which we badly need? As there is little time left until the debenture holders foreclose, would my noble Friend give the greatest attention to this matter?

Lord John Hope

Yes, Sir.

Mr. H. Hynd

Should not people who have money to invest be encouraged to help to develop their own country rather than to export capital abroad?

Mr. Speaker

That is another matter.