HC Deb 20 November 1958 vol 595 cc1304-5
15. Mr. Marquand

asked the Chancellor of the Exchequer what representations have been made by the Iron and Steel Holding and Realisation Agency to the directorates of iron and steel companies, whose fixed-interest-bearing stocks are held by the Agency, drawing their attention to the undesirability of dissipating the funds of these companies by contributions towards an advertising or other political campaign against national ownership of the industry.

Mr. Erroll

None, Sir.

Mr. Marquand

Is the hon. Gentleman aware that Stewarts and Lloyds Ltd., the most prominent of these advertisers, recently described their ordinary shareholders as the real owners of the company, whereas in fact the Agency sold hack only a nominal value of £10 million worth of ordinary shares and still holds a nominal value of £20 million worth of other securities in the company? Will the hon. Gentleman instruct the Agency to ensure that this concern, in which it holds such a large stake, does not waste the money of the security holders in this unnecessary and entirely wasteful advertising?

Mr. Erroll

The right hon. Gentleman has referred to a particular case, but I should like to remind him of the general principle, which is that the holding of fixed-interest securities does not entitle the holder to interfere with the company in the ordinary conduct of its business.

Mr. Marquand

When Her Majesty's Government are the holders of securities to this very large value in the company, surely it is the duty of the Government to see that the Agency protects the interests of the debenture and preference shareholders.

Mr. Erroll

I do not think that that would warrant us interfering with this well-established and well-understood principle.

Mr. Marquand

Will the hon. Gentleman at least convey to his right hon. and noble Friend the Lord President of the Council the facts of the case so that misleading information may no longer be used in Government propaganda?