§ 37. Mr. Croninasked the Chancellor of the Exchequer if he will now put in hand measures to obtain general dividend limitation.
§ Mr. BirchRestraint in the payment of dividends is certainly still necessary, but I doubt whether statutory regulation would most effectively secure this. Different companies have different needs, and I think that it is generally best to rely on the judgment of responsible managements.
§ Mr. CroninDoes the right hon. Gentleman appreciate that the Government's emphasis on the desirability of limiting wage increase claims would convey much more conviction if some definite action were taken to limit this very inflationary source of income?
§ Mr. BirchThe hon. Gentleman will, of course, appreciate that dividend policy as a whole in this country is far more conservative than it was before the war. Before the war, about 60 per cent. of income was distributed, and now the proportion is only about 29 per cent.