HC Deb 03 December 1959 vol 614 c1366
31. Mr. Lawson

asked the Chancellor of the Exchequer if he will consult with Messrs. Colvilles, Limited, Motherwell, with a view to converting the £14 million of public money at present invested with that company in the form of loan capital at a low fixed rate of interest into ordinary dividend earning shares.

Mr. Barber

No, Sir. It would be contrary to Government policy for the Iron and Steel Holding and Realisation Agency, by whom these investments are held, to acquire ordinary shares in companies that have been denationalised.

Mr. Lawson

Is the Economic Secretary aware that when this company was denationalised four years ago the ordinary shares were sold for £13 million and that, because of the public money loaned to this company since then, those ordinary shares are now worth £33 million? Does not the hon. Gentleman think that he has a duty to ensure that the public purse benefits as well as the private sector?

Mr. Barber

Of course we have a duty to consider that, but nevertheless the Agency also has a duty—indeed, it is its primary duty, which is consistent with Her Majesty's Government's policy—not to acquire equity shares in companies already de-vested.

Mr. Marquand

In view of the vast public investment in this company, would it not be a good plan to appoint some Government directors to ensure that the business is managed properly?

Mr. Barber

That is another question.