HC Deb 22 February 1955 vol 537 cc125-6W
59. Mr. Lawson

asked the Chancellor of the Exchequer the value of the total net assets of Colvilles Limited, of Mother- well, at the date of nationalisation, and at 31st December, 1954.

Mr. R. A. Butler

The figure of total net assets of Colvilles Limited, including its subsidiaries, was £15,705,000 in the group balance sheet as at 31st December, 1950, and £22,180,000 as at 2nd October, 1954. These are the nearest dates for which such figures are available.

60. Mr. Lawson

asked the Chancellor of the Exchequer what price was paid on nationalisation for the total share capital of Colvilles Limited; what dividends were paid by Colvilles Limited from the date of nationalisation to 31st December, 1954; and what loans or additional in vestment in Colvilles Limited were made by the Iron and Steel Corporation of Great Britain during the period of nationalisation.

Mr. R. A. Butler

The compensation for the total share capital of Colvilles Limited on nationalisation was approximately £10 million. Dividends paid on the share capital from the date of nationalisation to 31st December, 1954, net of tax, totalled about £1¼ million; in addition the company paid a special dividend of approximately £6 million net to the Agency in December, 1954, which the Agency applied in subscribing for fresh securities issued by the company. The Corporation did not make any loans to or additional investment in the company during this period.

61. Mr. Lawson

asked the Chancellor of the Exchequer what profit or loss the Iron and Steel Holding and Realisation Agency expect to make when Colvilles Limited have been completely resold to private investors.

Mr. R. A. Butler

The gross proceeds of the sale to the public of the ordinary shares of Colvilles Limited are £13 million, and this in itself exceeds by nearly £3 million the cost of the Agency's investment in this company. In addition, the Agency hold debenture stock and preference shares of the company to a nominal value of £14 million, of which £2 million has been paid up; the balance will have to be met in due course and will fall to be recovered when these securities are sold. No exact figure of profit can be given until this sale has taken place.