Company Law

HC Deb 25 March 1974 vol 871 cc28-9

31. Mr. Michael Latham

asked the Secretary of State for Trade whether he intends to introduce a Bill to reform company law in the present Session of Parliament.

Mr. Clinton Davis

We are considering the reform of company law but do not expect to be ready to introduce legislation in the present Session.

Mr. Latham

Should not such a useful measure, which was already drafted by my right hon. Friend, have priority in the Government's programme over, for example, land nationalisation?

Mr. Davis

The Conservative Party has, as usual, got its priorities utterly wrong. The Bill that was introduced was of a traditional kind, concerned primarily with the interests of shareholders and creditors and hardly dealt with the responsibilities of a company towards its employees or indeed to the community at large. The nation would require the introduction of a more ambitious Companies Bill than was proposed by the Conservative Government.

Sir Derek Walker-Smith

Will the hon. Gentleman say whether it is the intention of the present administration, as it was of the late administration, to issue a Green Paper on a possible two-tier structure of companies with provision for employee participation and, if so, when?

Mr. Davis

That is a matter to which we will give consideration, but it would be premature for me to make a statement at this stage.

Mr. Heseltine

Surely the hon. Gentleman would agree that in the interests of open government a measure of the nature implied by the hon. Member's suggestion would demand at least the publication of a Green Paper. Why is he not able to give the House an assurance now that there well at least be that degree of consultation before the introduction of legislation?

Mr. Davis

It is always refreshing to hear the hon. Gentleman offering himself as the exponent of open government, particularly after his efforts the other day on another matter. We have been in office for a relatively short time—[HON. MEMBERS: "Too long."] The Opposition had their remedy the other day. A clear study of company law has been undertaken by my party and we are giving full consideration to all these matters.