HL Deb 25 June 1975 vol 361 c1389

2.49 p.m.

Lord BALFOUR of INCHRYE

My Lords, I beg leave 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 they will consider raising the present maximum permissible limit of dividend distribution in the interests of unit trust investors and stockholders, many of whom are small investors dependent on pension funds or investment income for their livelihood and bearing in mind that most other sections of the community, including industrial workers and Government administrators, have had, or are in process of obtaining, substantial increased payments to meet rising inflation costs.

Lord JACQUES

My Lords, when the Government took Office the permissible annual increase in dividends was 5 per cent. Last July my right honourable friend raised it to 12½ per cent. and promised a comprehensive review this year. In connection with that review a factual report from the Royal Commission on the Distribution of Incomes and Wealth is expected next month. My right honourable friend will certainly take into account the issues raised by the noble Lord as well as other issues.

Lord BALFOUR of INCHRYE

My Lords, I thank the noble Lord for that answer.