§ LORD SILKINMy Lords, I beg to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether their attention has been drawn to the proposals being made by the directors of the First Garden City Limited, to remove the limit of 5 per cent. per annum on its dividends and its obligation to apply any surplus profits for the benefit of the town of Letchworth and its inhabitants; and whether, in order to secure for the community the financial benefits that it was intended by the Letchworth enterprise that they should enjoy, Her Majesty's Government will consider taking over the Letchworth Estate under the New Towns Act, 1946, or some other action that will ensure that the public is not deprived of the promised financial benefits.]
§ THE MINISTER WITHOUT PORTFOLIO (THE EARL OF MUNSTER)My Lords, the attention of Her Majesty's Government has been drawn to the proposals of the directors of the First Garden City Limited. Her Majesty's Government do not consider, however, that the scale of development proposed at Letchworth is such as to justify action under the New Towns Act, 1946, and they have no other powers which would enable them to intervene in these matters, which are primarily for the company itself to settle.
§ LORD SILKINIs that really so? This company was formed for the benefit of the people of Letchworth, and under its Articles the public were invited to subscribe in order that eventually the urban district of Letchworth should benefit. Is it really open to the directors unilaterally to take away those benefits, and does the noble Earl say that the Minister has no power of intervention at all?
§ THE EARL OF MUNSTERMy Lords, the Answer I have given the noble Lord, Lord Silkin, is absolutely accurate and correct. My right honourable friend has no power whatever to intervene in any way in this company. It is primarily for the company and the shareholders to settle the question which has now come before them.
LORD SILKENWould the noble Earl ask his right honourable friend to make representations to the board? A meeting is being held on April 5, and if the noble Earl's right honourable friend would express a view on the matter it would carry considerable weight.
§ THE EARL OF MUNSTERThat may be. But I think it would probably be very inappropriate for my right honourable friend to intervene in a matter which is entirely one for the company to settle.