§ 68. Mr. Chamberlain
asked the Chancellor of the Exchequer whether he is aware that Messrs. Harvey and Sons Ltd., tanners and curriers of Bury and Nantwich, having recently doubled their paid-up capital by means of a 100 per cent. bonus issue, are proposing to pay dividend at 20 per cent. on the extended ordinary capital in place of 15 per cent. paid hitherto on the smaller amount of ordinary capital; whether this intention was made clear to the Capital Issues Committee at the time of the bonus issue application; and why permission was granted in view of the Government's policy in the matter of wages, prices and profits.
§ Mr. Jay
The dividend limitation scheme is a voluntary one, and it is not therefore the practice, in considering applications for the issue of bonus shares, to require any indication of the future dividend policy of the concern. No such indication was given in this case. As my right hon. and learned Friend has already informed the House, any departures from observing the voluntary limitation of dividends will be taken into account in deciding upon the policy to be pursued when the present scheme comes to an end.