HC Deb 21 November 1967 vol 754 c1110
6. Mr. Whitaker

asked the Chancellor of the Exchequer whether he will make it Government policy that, whenever public capital is given or lent to a private company, the nation receives an equivalent shareholding and representation on the board of directors.

Mr. Diamond

Taking an equity holding, and appointing Government directors, are not necessarily the most appropriate ways of securing the national interest in every case. I would refer my hon. Friend to the Prime Minister's remarks in the debate on the Gracious Speech on 31st October.—[Vol. 753, c. 29–34.]

Mr. Whitaker

Would my right hon. Friend not agree that it is grossly unfair on the taxpayer that, when one of these projects makes a profit the profit goes to private shareholders, but when a project, such as Cunard, makes a loss, that loss is borne by the taxpayer?

Mr. Diamond

It is the earnest endeavour of the Treasury to see that this does not happen.

Mr. Patrick Jenkin

Does the Chief Secretary's first answer mean that the Government have abandoned the Industrial Expansion Bill, and does he recognise that an announcement of the abandonment of that would do more to strengthen this country's position than almost anything else?

Mr. Diamond

It does not mean that. I take precisely the opposite view.