HC Deb 10 May 1984 vol 59 c1075
9. Mr. Greenway

asked the Chancellor of the Exchequer how many firms were operating employee share—owning schemes in 1974, 1979, and at the latest date for which figures are available; and if he will make a statement.

Mr. Moore

By the end of April the number of employee share schemes approved by the Revenue for the purposes of tax relief had increased from 30—the comparable figure in 1979—to 689. Most of these schemes relate to a group of companies and the number of participating companies is estimated at well over 6,000— benefiting around 500,000 employees.

Mr. Greenway

Is my hon. Friend aware that I warmly welcome the increasing spread of wealth that is indicated by his reply? The figures are excellent. Does he agree that employee share—owning schemes are a much better way of increasing the distribution of wealth than Socialist state monopoly and nationalisation, which bring only higher taxes for each of us and which are advocated by the Labour party?

Mr. Moore

I could not agree more with my hon. Friend. The ways in which 500,000 employees are now not only benefiting financially but have a much better relationship and commitment to their place of work should be welcomed by all right hon. and hon. Members.

Mr. Wainwright

Does not the Minister agree that the biggest single handicap to the development of employee share schemes will be the restrictive guidelines issued by pension funds, life assurance companies and other institutional investors through the investment protection committee, which are so restrictive as severely to limit the extent to which companies can develop employee share schemes? Will the Minister make it clear to those institutions that that is against the public interest?

Mr. Moore

Without further details, I should not want to dictate to the IPC its role. I shall examine any points raised by the hon. Gentleman. I think that he will welcome, as all hon. Members should, the extension beyond the original 1.5 million shareholders of the additional 500,000 shareholders through employee share schemes in the past four years.