HC Deb 28 March 1957 vol 567 cc1330-3
30. Mr. G. R. Strauss

asked the Chancellor of the Exchequer whether he will state the result of the recent public invitation for tender for £ 40 million shares in the Steel Company of South Wales made by the Iron and Steel Holding and Realisation Agency.

Mr. Birch

Twenty-one thousand, five hundred and forty-nine applications were made for 45,740,900 shares. The applications from two companies for 2 million and 1 million shares, respectively, and for 248,500 shares made by the trustees on behalf of employees of the company were accepted in full. Other applications for up to and including 2,000 shares were accepted in full; applications for more than 2,000 shares were accepted to the extent of about 85 per cent.

Mr. Strauss

In view of the fact these 21,000 people are now likely to be drawing millions of pounds a year from the resources of the Steel Company of Wales which could otherwise be used for improving the equipment of the company or the working conditions of its staff and employees, can the right hon. Gentleman tell us what these 21,000 people are going to do to justify this and compensate for the obvious damage they will do to the company?

Mr. Birch

What they are doing is putting up £ 40 million of their savings.

Mr. Strauss

Is the right hon. Gentleman not aware that there is no new money concerned here? Does he not realise that this money was there before and only 3½ per cent interest had to be paid on it instead of the 8 per cent, which will now have to be paid out?

Mr. Birch

This money is recouping the Exchequer, as the right hon. Gentleman knows.

Mr. Dudley Williams

Will my right hon. Friend bear in mind that, whatever may be the opinion of the party opposite, we on this side are overjoyed that so many of these shares have gone into the hands of employees in the industry, and can he further say whether any applications were made by trade unions in this issue?

Mr. Birch

There certainly was a large number of applications from the employees. I cannot answer the second part of my hon. Friend's question.

Mr. Jack Jones

Will the Economic Secretary say how many applications have yet been received from the employees for these shares?

Mr. Birch

I gave the total number of shares applied for and allotted.

31. Mr. G. R. Strauss

asked the Chancellor of the Exchequer whether any application was made to him under Section 18 (1) of the Iron and Steel Act, 1953, by the Iron and Steel Holding and Realisation Agency to postpone the sale to private owners of the Steel Company of South Wales.

Mr. Birch

No, Sir.

Mr. Strauss

Does not the right hon. Gentleman, as a representative of the Chancellor of the Exchequer, think it is desirable to save public money, and is he not aware that most of the £ 1,200,000 went in commissions to people who underwrote, and does he not regard that as a deplorable waste of public money to no purpose whatever and giving no possible advantage to the steel industry or to the public? In view of all those facts, will he not suggest to the Agency that it should not persist further in selling the remaining assets in its possession?

Mr. Birch

Parliament decided to denationalise the steel industry. We believe that the results have been good and have been of benefit to the country as a whole. Obviously, if one makes a public issue, certain expenses are involved.

Mr. Strauss

But is the right hon. Gentleman not aware that, when the Bill was before Parliament, it was never suggested by anyone— there would have been a row in all parts of the House-that the expense of selling the industry back to private shareholders was going to amount to something between £ 5 million and £ 10 million, which is a complete waste? As this is a new factor in the situation, will he not use his influence with the Agency to stop it selling any more?

Mr. Birch

The terms are perfectly usual for issues. Anyone could have guessed what they would be.

Viscount Hinchingbrooke

Will my right hon. Friend tell the right hon. Member for Vauxhall (Mr. G. R. Strauss) that this is the sort of process we hope will continue over a much wider field in the next two years, and he had better get used to it?

Mr. Jay

Is the Economic Secretary aware that these operations will be taken into account when the industry is renationalised?