§ Mr. J. H. Osbornasked the Chancellor of the Exchequer if he will make a statement about the capital structure of Richard Thomas and Baldwins Limited.
§ Mr. Boyd-CarpenterYes. The financing of the development programme at Newport and elsewhere has led to an increase in the company's indebtedness 155W on loan account out of proportion to the issued share capital. At 30th September, 1963, the company's fixed interest debt (excluding temporary borrowing) totalled £175 million, of which £70 million was owing to my right hon. Friend the Minister of Power and £105 million was owing to the Iron and Steel Holding and Realisation Agency. The issued share capital of the company has remained at £10.8 million for some years. With the agreement of the Treasury and the Agency the company have decided to increase the issued share capital to £61 million by the issue of £50.2 million of ordinary share capital to the Agency at par by conversion of an equivalent amount of the Agency's loan to Richard Thomas and Baldwins, Limited. The increase in capital is primarily intended to bring about a more normal relation- 156W ship between Richard Thomas and Baldwins' share and loan capital.