HC Deb 02 February 1959 vol 599 cc28-9
47. Mr. Strauss

asked the Paymaster-General what share of the profits that Messrs. Colvilles may make as a result of the Treasury loan of £50 million for the building of the semi-continuous strip mills at Ravenscraig will accrue to the Treasury under the arrangements he has made with them.

Mr. Maudling

The right hon. Member will see from the Answer given to my hon. and gallant Friend the Member for South Fylde (Col. Lancaster) on 21st January that the loan agreed to be made by Her Majesty's Government to Messrs. Colville's Ltd. is a fixed interest loan, participating neither in profits nor in losses.

Mr. Strauss

Can the Paymaster-General say why this loan was not made in the form of convertible debentures, which is not unusual nowadays? Is he aware that as a result of this transaction, out of the £80 million capital of Colville's, £66 million will belong to the State and £14 million to private individuals, but that the profits and benefits of the capital appreciation will go to the private holders of the £14 million? Can he possibly justify that, and will he invite Mr. Hurry to find whether this indefensible situation has public support?

Mr. Maudling

The Government do not believe that they—the Government— should participate in the equity of the steel industry.

Mr. Bowles

Last week, the right hon. Gentleman gave me an Answer in the negative to my Question whether it was a condition of the borrowing of national money by this private firm that it should be prevented from advocating the private ownership of the steel industry? Is not this the most disgraceful Answer that anybody could have given to public money being used by private enterprise to oppose the public ownership of the steel industry?

Mr. Maudling

Any public money lent to Colvilles will be used specifically for the purposes agreed between the Government and Colvilles.