HC Deb 16 January 1986 vol 89 cc1193-4
2. Mr. Greenway

asked the Chancellor of the Exchequer if he will estimate the number of people holding shares, savings or any other kind of investment in 1978 and 1984; and if he will make a statement.

The Minister of State, Treasury (Mr. Peter Brooke)

The number who own shares directly has at least doubled since 1978 to over 3 million people, and recent market research suggests that the figure may now be much higher.

Mr. Greenway

I welcome that magnificent spread of wealth in the country. May I ask how many people who have been saving for old age with pension and insurance companies would lose if privatised companies were renationalised on the discriminatory basis so rashly announced by the Leader of the Labour party in his new year interview? What would those people do?

Mr. Brooke

The number involved would be affected according to which shares were held by which institutions. However, 13 million electors hold occupational pensions, and if there were privatised shares in those institutions they would all be mulcted of the improvements in the price since they were served.

Mr. Tony Lloyd

Will the Minister admit that in the case of all the privatised companies, shortly after privatisation the number of small shareholders has decreased dramatically? In the case of British Aerospace, recently in the news, within 12 months the number of shareholders holding fewer than 500 shares went down to almost 10 per cent. of those who had bought them at the point of privatisation. Will the Minister tell the House the truth—that privatisation is not about wider share ownership, but is about the hands of some of his hon. Friends going into the jam pots to make money for themselves and their backers?

Mr. Brooke

Individual decisions about individual shares will be taken differently, according to the company, by individual investors. The fact remains that 80 per cent. of the new shareholders in British Telecom still hold those shares.

Sir Brandon Rhys Williams

Does my hon. Friend's Department look favourably at ways, such as minor tax changes, that might encourage people to invest not only in equities but in debentures and other forms of investment?

Mr. Brooke

The Government are supportive of sales of debentures in the same way as they are of equities.

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