HC Deb 19 December 1984 vol 70 cc294-6
24. Mr. Hayward

asked the Secretary of State for Trade and Industry what steps he has taken to provide encouragement for greater employee participation through share ownership schemes in the enterprises under his control.

Mr. Fletcher

As I have already told the House today, we have just completed the biggest single step so far this century towards wider ownership of shares in British industry. Over 2 million people purchased British Telecom shares, including many first-time investors and 184,000 employees of BT. We shall continue to encourage wider ownership of shares both by employees and by individual investors.

Mr. Hayward

I thank my hon. Friend for that answer, but may I ask him whether he has any expectation that, in the near future, share ownership in this country will rise to the levels that currently exist in France and West Germany?

Mr. Fletcher

We would be extremely pleased to see that happen. We are taking other steps, too. Privatisation is very important, but changes are also taking place in the Stock Exchange and in the financial services sector in general which will encourage wider share ownership.

Mr. Williams

Does the Minister recollect, in relation to BT, that there were warnings that those who made multiple applications could face actions for fraud? Can he tell us that his Department intends to initiate such legal action, bearing in mind the Prime Minister's injunction that the law must be obeyed? Or is it only working men and women who have to obey the law, and not the Government's friends in the City?

Mr. Fletcher

There is no justification for that remark. My Department is investigating very carefully the cases that have been brought to our attention.