§ 8. Mr. Jayasked the Chancellor of the Exchequer whether it is still the policy of the Government that restraint should be exercised by industry in the payment of increased dividends.
§ Sir E. BoyleYes, Sir.
§ Mr. Jaycan the Economic Secretary say whether it is the policy of the Government that there should be restraint in dividends? Although the Chancellor of the Exchequer, in his Newcastle speech— according to both The Times and the Manchester Guardian reports—said a great deal about wage restraint, he said nothing whatever about dividend restraint.
§ Sir E. BoyleThe fact that Profits Tax on distributed profits has been increased by 7½ per cent., an increase of 33⅓ per cent. over previous rates, is a clear sign of the attitude of the Government to the greater distribution of dividends at the present time.
§ Mr. JayWhy did the Chancellor, in this much advertised and lengthy speech, say nothing about dividend restraint at all, when even the Prime Minister said 413 something about it at Perth? Will the Economic Secretary tell us why the Chancellor of the Exchequer left it out?
§ Sir E. BoyleMy right hon. Friend said a very great deal about the excess of home demand. The right hon. Gentleman will remember that we on this side of the House have always said that increased dividends may imply increased consumption. There is no change here.
§ Viscount HinchingbrookeIs my hon. Friend aware that when advice of the right hon. Member for Battersea, North (Mr. Jay) is heeded it results very often in such a situation of economic falsity in an industry or a company as to constitute a standing invitation to Mr. Clore to come in and put it right?