HC Deb 23 May 1963 vol 678 cc618-9
13. Mr. Ross

asked the Chancellor of the Exchequer if he will take steps to ensure that profits do not exceed an annual increase of 3½ per cent.

Mr. Ross

I should point out that the word "distributed" should come before the word "profits" in the Question.

Mr. du Cann

I think that rather alters the sense of the Question, but the Answer to the one on the Order Paper is that my right hon. Friend the Prime Minister gave an undertaking in this House on 26th July last that the Government will, by fiscal or any other appropriate means, restrain any undue growth in aggregate profits which might follow from restraint in wages and salaries."—[OFFICIAL. REPORT, 26th July, 1962; Vol. 663, 1763] The National Incomes Commission is required to have regard to this pledge and to report from time to time on the need, if any, for corrective action.

Mr. Ross

Surely if we want to get acceptance of this policy there must be a sense of justice and fair play in respect of all forms of income. Any glance at any of our financial newspapers will show that ½ per cent. is certainly not regarded as applicable to them by many companies which are presently declaring very considerable increases in dividends. I have a list to which I could refer the hon. Member.

Mr. du Cann

I agree completely with what the hon. Member said in the first part of his supplementary question. As a matter of fact, ever since 1958 gross trading profits of companies increased at an average annual rate of 3½ per cent., which is precisely the figure commended by the hon. Member, and I do not see any need to take the suggested action.

Mr. Ross

The Question is not concerned with gross profits but with the growth of income by distributed profits, and the increase in the last 10 years has been over 160 per cent.

Mr. du Cann

The hon. Member will appreciate that there is some difficulty here because he is now asking a question somewhat different from that which appears on the Order Paper. If he will be good enough to table a fresh Question, I shall do my best to answer it.