HC Deb 24 May 1962 vol 660 cc645-6
5. Mr. John Hall

asked the Chancellor of the Exchequer if, when denationalising Richard Thomas & Baldwins, he will allow holders of post-war credits to have the option of converting the whole or part of their holdings into ordinary stock of the company, with such restrictions as to future sale or transfer of the stock as may be necessary.

Mr. Barber

I cannot comment on the arrangements which might be made on a sale of this company. My hon. Friend's proposal would, however, be open to serious objection.

Mr. Hall

Would not my proposal have two undoubted merits? One is that the present holders of post-war credits might well find when they are eventually paid out that the purchasing value of post-war credits has gone down to about a quarter of the original value and that a share in an equity such as Richard Thomas & Baldwins might enable them to recover something from the wreck. Secondly, it would help considerably in the marketing operation which would have to follow the denationalisation?

Mr. Barber

Be that as it may, I think that the proposal of my hon. Friend would have at least two demerits. Any sale of Richard Thomas and Baldwins by a public offer of shares would be a large and very complicated operation if only because of the size of the company. It would be an intolerable burden on the issuing houses which would have to handle any such public offer if the arrangements were further complicated by a requirement that post-war credits were to be accepted in payment of shares. There are other lengthy reasons which, if he wishes, I will write to my hon. Friend about, but there are great difficulties in his proposal even if it were desirable in principle.

Mr. Hall

Is my hon. Friend aware that I do not regard the first objection as anything but a technical difficulty and I could explain how to overcome it if he desires?

Mr. Callaghan

Whatever the merits of the proposal, is not the Chief Secretary glad to hear that investment in a nationalised industry is likely to be so valuable that it would recover for the post-war credit holders the value of their credits which has been lost by Government inflation over the last ten years?

Mr. E. L. Mallalieu

While understanding the fears which hon. Members opposite have in seeing a nationalised steel industry running so efficiently alongside those Which are denationalised, may I ask whether the hon. Member would agree that the Government have far more important things to think about than the denationalisation of Richard Thomas and Baldwins?

Mr. Barber

The importance which the Government attach to this question is, I think, clearly apparent from the answers which the Chancellor of the Exchequer gave only the other day, on 22nd May.