City of London

HC Deb 27 April 1978 vol 948 cc1632-3

13. Mr. Hoyle

asked the Chancellor of the Exchequer what plans he has to meet representatives of the City of London in the near future.

Mr. Denzil Davies

My right hon. Friend has no plans to meet representatives of the City of London in the immediate future.

Mr. Hoyle

Will my right hon. Friend say what measures we shall take against those sections of the City which once more seem determined to sell the pound short, which would fuel inflation at the expense of the nation? That seems a queer form of patriotism to me.

Mr. Davies

Many sections in the City seem to react in a short-term way to any policy charges. Indeed, I sometimes think that, on average, there are more manic-depressives in the City than in other parts of the community.

Mr. Biffen

Is the right hon. Gentleman aware that, none the less, there are some uncertainties about Government policy which are causing difficulty and which we would do well to resolve at an early opportunity? Can he therefore indicate what the Government's policy is in respect of curbs on dividends when the present statutory constraints run out?

Mr. Davies

The policy was clearly enunciated by my right hon. Friend in a Written Answer. As the hon. Gentleman knows, it is that if action is not taken—if more measures are not introduced to the House—the present statutory restrictions will be lifted. That is the answer that my right hon. Friend gave. The hon. Gentleman must wait and see.

Mr. Heffer

If my right hon. Friend does at some time meet representatives of the City, will he ask them not to act like frightened fillies at the sight of a stallion in the next field whenever my right hon. Friend, or any other of my right hon. Friends suggests that following a Summit meeting there might be further proposals to help the economy of this country? Will he also ask them actively to encourage the use of the money that is lying around in the City for investment in this country?

Mr. Davies

My hon. Friend's second point is quite right; there seems to be a general desire in the City to invest any available money abroad. Over the years it seems to me that the City has paid more attention to foreign investment than investment in this country. That is to be deplored.

Mr. Peter Rees

Will the Minister of State make clear what the Government's policy is with regard to dividend restraint?

Mr. Davies

I have answered that question, although it was not on the Order Paper. The policy remains as my right hon. Friend the Chancellor mentioned to the House in a recent Written Answer.