HC Deb 21 October 1969 vol 788 cc929-30
10. Mr. Boyd-Carpenter

asked the Chancellor of the Exchequer whether he has now reached a decision on the question of seeking powers to restrict distributions by companies by way of dividend after the end of the present calendar year.

Mr. Diamond

I have nothing to add to the Answer I gave to the hon. Member for South Angus (Mr. Bruce-Gardyne) on 14th October.—[Vol. 788, c. 60.]

Mr. Boyd-Carpenter

Is it not highly unsatisfactory that companies should be left in ignorance, when the date concerned is only just over two months ahead, of what the Government intend or do not intend to do by interfering in their activities?

Mr. Diamond

The right hon. Gentleman has made it clear that the companies know their position to the end of December with precision. For the period after that, I am not aware that there is any considerable inconvenience. I would be anxious to meet it if I knew of it.

Mr. Higgins

Is it not absurd for the Government even to continue giving this sop to their Left wing when their prices and incomes policy is in a shambles? Is it not the effect of this restraint to distort the allocation of resources to the economy and reduce the growth of national income? Will the right hon. Gentleman make his position clear and say that he will not continue this absurd farce?

Mr. Diamond

I will make my position perfectly clear and say that the Government will have an announcement to make at the earliest possible opportunity and trust that no major inconvenience will be caused in the meantime.