HC Deb 14 February 1957 vol 564 cc1415-7
2. Mr. Marquand

asked the Chancellor of the Exchequer what proportion of the equity and fixed interest bearing capital of iron and steel companies formerly vested in the Iron and Steel Corporation, respectively, has, up to the present, been transferred to private owners.

The Economic Secretary to the Treasury (Mr. Nigel Birch)

In view of the changes in the capital structure of many companies it is not possible to give the answer in the form sought by the right hon. Member; but I am sending him a copy of the third Annual Report of the Agency in which the position is explained in detail.

Mr. Marquand

Even if the right hon. Gentleman cannot give me exactly what I ask for, would it be fair to conclude that after three years of so-called denationalisation the Government have handed over control of policy of 75 per cent. of the productive capacity of the steel industry but have left the nation to hold the baby of fixed interest bearing securities to the extent of something like 75 per cent.? Is it not time that the Government made a considered statement of their policy in regard to the denationalisation of the steel industry?

Mr. Birch

There has been no change in policy. The right hon. Gentleman had better study the figures first.

Mr. Marquand

If there has been no change in policy, will the right hon. Gentleman say whether the nation was informed in the Elections of 1951 and 1955 that denationalisation would mean merely handing over the control of the industry while leaving the fixed interest bearing capital in the hands of the nation?

3. Mr. Marquand

asked the Chancellor of the Exchequer what directions have been given by the Iron and Steel Holding and Realisation Agency to iron and steel companies whose capital stock is held by it as to the amounts of their gross profits which shall be reinvested in the industry or held in reserve.

Mr. Birch

It is the general practice of the Agency to allow subsidiary companies to retain the balance of net profits after payment of dividend at the same rate as in 1948.

Mr. Marquand

Is this the policy now being followed in Wales? Is the right hon. Gentleman aware that, as a result of what has been going on, the greater part of the steel industry in Wales is still the property of the people and that, certainly in Wales, when they voted in the two Elections of which I have spoken, the people did not give a mandate for the denationalisation of iron and steel? May we have a promise that the Government will now stop as far as they have gone and leave the industries of Wales in the hands of the people?

Mr. Birch

Denationalisation of steel was decided by Parliament. I do not see that the right hon. Gentleman's supplementary question has anything to do with his original Question.