§ 5. Mr. Hamlingasked the First Secretary of State and Secretary of State for Economic Affairs what has been the movement of dividends since October, 1964; and to what extent the movement has accorded with Government policy on incomes.
§ Mr. George BrownIt is estimated that in the first quarter of 1965 total gross dividend payments on ordinary and preference shares were 28 per cent. higher than a year earlier. I consider that this rate of increase is excessive and am keeping a careful watch on the position.
§ Mr. HamlingIs my right hon. Friend aware that since January, 1963, average earnings have gone up by only 17 per cent. and since last October by only 2 per cent.? Will he draw these statistics particularly to the attention of the Front Bench opposite?
§ Mr. RidsdaleIs the First Secretary aware that many of us think that it would be impossible for him to carry out a successful policy as long as his Government continue to penalise those who are trying to save and encourage those who are not trying to do so?
§ Mr. William HamiltonCan my right hon. Friend give an assurance that he will not be disposed to refuse to refer dividends to the Incomes and Prices Board? Does he not recognise—I am sure he does—that if he is to get agreement on an incomes policy it must be fair to all incomes? Will he give an assurance that he will refer some of these incomes to the Board early?
§ Mr. BrownYes, I am quite clear that incomes in the terms of the policy we are trying to operate now means all incomes, and anyone having incomes outside what can be permitted within the rise of productivity is contributing to the inflationary spiral.
§ Mr. BiffenThe First Secretary says that dividends have increased by 28 per cent., but can he tell the House whether the capital employed in giving rise to those dividends is strictly comparable to the two periods?