HC Deb 17 July 1968 vol 768 cc1439-40
Mr. McMaster

I beg to ask leave to move the Adjournment of the House under Standing Order No. 9 for the purpose of discussing a specific and important matter that should have urgent consideration, namely, the American Tobacco Company's bid to purchase a controlling interest in Gallaher Ltd., the manner in which this bid has been conducted, the possible effect, if it is successful, on employment in Gallaher's factories, and the economic implications of the bid for our economy". I submit that the matter is specific in that it relates to a particular attempt to gain a majority interest in a major British tobacco manufacturing company. It is urgent in that it relates to events which took place yesterday in London. It is important in that if the bid succeeds control over an old-established British company supplying one-third of the United Kingdom market with tobacco and cigarettes will pass into foreign hands.

I should like to make it clear that I do not in any way wish to criticise either the American Tobacco Company or Philip Morris for the interest which they are taking in the British tobacco industry. Indeed, I welcome—

Mr. Speaker

Order. The hon. Member must not drift into the merits of what he wants to debate.

Mr. McMaster

I would simply argue that I welcome the fact that they deem it worth while to invest £65 million in Gallaher's. However, I suggest that the question which is of definite public concern is whether it is right that any overseas company should be allowed to purchase 50 per cent. of the equity of a leading British company and thus gain control over it and a commensurate share in its profits.

I also submit that it is a matter of concern because the offer is made with a paper currency—either dollars or Eurodollars—which is no longer backed by a guarantee of convertibility into gold at its ordinary market price and which may well depreciate in value if the inflationary trends which have existed since the war continue, whereas the value of the assets which would be purchased has risen steadily.

The second point of concern is the manner in which the bid has been pursued in the City. It is important that the House should consider whether there has been a breach of the City's code relating to the conduct of take-over bids. It will not have escaped your notice, Mr. Speaker, that this has attracted much comment, both attacking and defending, in today's Press. I submit that this is a matter of urgent concern which should be debated by the House.

Concern has been expressed in the Belfast Press about the possible effects of the take-over on employment in Gallaher's main factories in Northern Ireland, where we already suffer serious unemployment problems. I do not myself believe that there are any grounds for those fears, but I submit that it is a further important aspect of the bid which deserves the attention of the House.

Mr. Speaker

The hon. Member was kind enough to give me notice this morning that be might ask leave to move the Adjournment of the House, as he has done, for the purpose of discussing a specific and important matter that he thinks requires urgent consideration, namely, the American Tobacco Company's bid to purchase a controlling interest in Gallaher Ltd., the manner in which this bid has been conducted, the possible effect, if it is successful, that it may have on employment in Gallaher's factories, and the economic implications of the bid for our economy. The House will remember that under the terms of the revised Standing Order No. 9, as agreed to on 14th November, 1967, Mr. Speaker is directed to take into account the several factors set out in the Order, but to give no reasons for his decision.

In the light of the new conditions, I have to rule that the hon. Member's submission does not fall within the provisions of the revised Standing Order and, therefore, I cannot submit his application to the House.