§ THE EARL OF LUCANMy Lords, on behalf of my noble friend Lord Temple-more, I beg to move the Motion standing on the Paper in his name. The modification referred to is to omit the words "Section 18 (Limit of dividend)."
§ Moved, That the Special Order as reported from the Special Orders Committee yesterday, be approved subject to the following modification: Page 27, line 14, leave out the words ("Section 18 (Limit of dividend)").—(The Earl of Lucan.)
507THE CHAIRMAN OF COMMITTEES (THE EARL OF ONSLOW)My Lords, you will have seen by the Minutes that were circulated this morning that the Special Orders Committee reported this Order to the House with a note that there is a departure therein from precedent. The precedent is this. In all former schemes of this kind, if an amount in excess of that required to pay the basic dividend is paid to the shareholders there is a clause providing that an equal amount shall be paid to the employees for their benefit. In this particular Order that clause by which the employees received benefit is omitted. One of the main advantages claimed for the operation of the basic price system is that not only do the shareholders but also the employees obtain a share of any additional profit that may accrue. Therefore the Board of Trade in their Report to the Special Orders Committee drew particular attention to the omission of this clause from the Order. They did not, however, feel bound to insist upon the insertion of the clause for reasons which I will state to your Lordships.
I may point out that the Order was unopposed, and a witness who appeared before the Special Orders Committee as a representative of the employees—I think there are about 50 of them altogether and they are all agreed—stated that they were in favour of the omission of this clause. That was because they have already a benefit scheme which they do not wish to be interfered with and which they prefer to adhere to in toto. It seemed to the Committee that the attention of your Lordships' House should be called to this circumstance because if your Lordships are disposed to agree that the usual clause should not be inserted in this Order, at any rate that course should be taken with an explanation that it was for a special reason and that the employees themselves were in favour of it and preferred that the present system should continue. I think it is most desirable that it should be recorded that this is an exception and is not to be taken as a precedent unless, of course, similar circumstances should arise in relation to another Order.
§ On Question, Motion agreed to.