Share Ownership

HC Deb 18 January 1990 vol 165 cc392-3

2. Mr. Roger King

To ask the Chancellor of the Exchequer by how much the number of shareholders in the United Kingdom has increased during the 1980s.

The Financial Secretary to the Treasury (Mr. Peter Lilley)

The latest Treasury and stock exchange survey in February 1989 showed that approximately 9 million people—that is 20 per cent, of the adult population—owned shares directly. This represents a threefold increase in the number of shareholders since 1979.

Mr. King

Does my hon. Friend welcome the dramatic addition to that list of shareholders represented by those who invested in Abbey National and in water, the flotation of which took place so successfully a few weeks ago? Does he agree that as eastern Europe seeks to adopt methods of privatisation and to encourage individual responsibility and investment by its people, the only political party that wants to take Britain back to a mark I type Polish economy is the Labour party?

Mr. Lilley

My hon. Friend is right. The figures that I gave do not include those who bought shares in Abbey National and in the successful water flotation. He is also right that the former Socialist countries in eastern Europe are appointing Ministers responsible for privatisation. In Poland my opposite number has the splendid title of the plenipotentiary in charge of ownership changes. In Hungary a commissioner responsible for privatisation has been appointed. The Labour party will not stand a chance of being elected until it appoints a shadow Minister in charge of privatisation.

Mr. Cryer

Does the Minister accept that shareholders are still a minority of the adult population? Is it not outrageous that the Government have sold off assets which belong to all the people to a tiny minority of the population and boast about it? In any decent society would not the Cabinet be prosecuted for theft?

Mr. Lilley

Shareholders are certainly not a minority of the population. There are now more direct owners of shares than members of the trade union movement.

Sir William Clark

Does my hon. Friend agree that one of the advantages of privatising industries is that, in most cases they are now profitable and the Exchequer receives corporation tax from them whereas before privatisation, many of them made losses and cost the taxpayers money in subsidies?

Mr. Lilley

My hon. Friend makes a good point. British Telecom now pays more in corporation tax than it used to pay in dividends to the Government when we owned the shares.

Mr. Boateng

Will the Financial Secretary take this early opportunity to clarify the Treasury's attitude to the banking sector? We are told that the Prime Minister is fizzing with anger and demanding retribution of an unspecified nature against it. Has the Chancellor of the Exchequer received his instructions? When the Prime Minister fizzes, does the Chancellor boil or gently bubble?

Mr. Lilley

I am happy to say that the banking system in this country is 100 per cent, privately owned. We intend to keep it that way. The subject under discussion is privatisation and share ownership. Within that context, I am happy to say that it will remain a successful, privately owned industry.