HC Deb 29 May 1968 vol 765 cc1800-1
2. Mr. Whitaker

asked the President of the Board of Trade what plans he has for further legislation affecting contributions by companies to political parties and groups.

The Minister of State, Board of Trade (Mr. Edmund Dell)

I think that the provision in the Companies Act, 1967, which requires political contributions to be disclosed is sufficient.

Mr. Whitaker

I commend Lord Carrington on his success as a director of Hambros Bank, but are not the activities of such companies obtaining money by false pretences, because shareholders have no chance of opting out of such contributions, whereas trade unionists are able to opt out of the levy?

Mr. Dell

I have a great deal of sympathy with the thinking behind my hon. Friend's Question. However, to enable shareholders to contract out would involve companies in difficulties. There is one way of contracting out, and that is to sell.

Mr. Patrick Jenkin

Is not the brief answer for the Government to get a Prime Minister better than Lord North?

Mr. Dell

I understand that companies may make contributions if the contributions can reasonably be regarded as benefiting the company. A board which believes that the economy or the company will benefit from the return of a Conservative Government is allowing optimism to triumph over experience.

Mr. Roebuck

Does not my hon. Friend agree that it is quite wrong that shareholders should be forced to make this compulsory levy to the policies of the party opposite, very often by directors who are not appointed on merit but through the "old boy network"? Will he not propose an Amendment to the Companies Act to make contributions to political parties conditional upon votes of the shareholders or special resolutions at annual meetings of the companies concerned?

Mr. Dell

As I say, there is a way in which shareholders can contract out, and that is to sell. No doubt in deciding whether to sell, they will take account of the record of the company concerned.

Sir R. Cary

Has the hon. Gentleman any further plans, because existing legislation is merely prompting many companies not only to double but to treble their contributions? I think that we ought to be a little cautious about this matter.

Mr. Dell

As I have indicated, I think that the object, which has been achieved, to make shareholders and the public aware of the activities of these companies, is adequate.