HC Deb 11 June 1964 vol 696 cc615-6
18. Mr. M. Stewart

asked the Secretary of State for Industry, Trade and Regional Development whether he is aware of the anxiety of certain local authorities, some of whose funds are invested in equities, that they may thereby become unwilling contributors to the funds of political parties; and whether he will introduce legislation requiring these companies with whom local authority funds are invested to disclose the extent to which they make such contributions.

Mr. du Cann

No, Sir.

Mr. Stewart

Could the hon. Gentleman explain why not?

Mr. du Cann

I should say two things on that subject. First, it would not be right to impose a special obligation on a company because a local authority holds some of its shares. Secondly, in the context of investment I should have thought there were more important criteria for judgment on a particular stock than this one.

Mr. Stewart

If the hon. Gentleman objects to doing it simply for the circumstances described in my Question, what about legislation to require that directors of companies should not devote their shareholders' or investors' money to political ends except openly? After all, the executive committee of a trade union handling its members' money cannot devote it to political ends except openly and subject to certain legal safeguards. Why should not the same rule apply to directors of a company handling money invested with it, particularly when the money comes from local authorities?

Mr. du Cann

My answer to the hon. Member is, no. If the donations are large, as he will know, the law would require disclosure. It is up to individual shareholders if they wish to ask questions on the subject. This is a matter we have discussed in this House many times and the position is clear and well known. I fail to see why companies under attack should not have the right to defend themselves.

Mr. Webster

While considering the expenditure on behalf of owners of property against compulsory acquisition with no known terms of compensation, will my hon. Friend consider expenditure by the co-operative society for the purpose of nationalising the ownership of property?

Mr. du Cann

My hon. Friend, as usual, does the House a service by painting the whole picture.