Scrip Issues

HC Deb 25 June 1968 vol 767 cc219-20

10. Mr. Ridley

asked the Chancellor of the Exchequer whether scrip issues may now be made by companies.

Mr. Taverne

As the provisions in the Prices and Incomes Bill adequately control increases in dividends, there is no need to duplicate safeguards by seeking powers in relation to scrip issues.

Mr. Ridley

Is it not idiotically silly to put control of scrip issues into the voluntary guidance published by the Treasury? Would the hon. and learned Gentleman accept that it is very dangerous to have government by Ministerial circular, which proves that things of this sort can go wrong and silly mistakes can be made by the Treasury?

Mr. Taverne

It was very important in the context of the prices and incomes policy to deal with matters which could be widely misunderstood, but the Prices and Incomes Bill makes it clear that any increase could be subject to control.