§ Mr. Beanasked the Secretary of State for Trade what further guidance he is giving to British companies in connection with the White Paper on Employment Practices in South Africa, Cmnd. Paper No. 5845.
§ Mr. ShoreI have replied to points raised with me since the publication of the White Paper Cmnd. 5845 by the Con-federation of British Industry and the United Kingdom South Africa Trade Association by a note of guidance, which I append below.
The main change from the White Paper reflects the implications of the South African Second General Law Amendment Act 1974, which imposes certain restrictions on the disclosure of information by South African registered companies. The South African Government have indicated that they consider their permission under this Act is needed by a South African registered company before it transmits information on wages and conditions of employment to a principal or associated company in the United Kingdom for publication as requested in the White Paper. They have told us they intend granting this permission, subject to the information being filed before its dispatch, if the British company holds 50 per cent. or more of the equity of the South African company, but not where it has a minority holding.
We shall, therefore, look for publication of the detailed information on employment practices specified in Annex 2 of the White Paper only where the British company holds 50 per cent. or more of the equity in the South African company—instead of more than 10 per cent. as indicated in Annex 2. But we shall continue to encourage British companies with a minority holding to publish whenever possible similar information acquired in the course of their relation-ship with their South African affiliate— 418W or published locally by the affiliate—as well as more general information on matters such as African advancement, collective bargaining, fringe benefits etc.
I have also decided that any company applying for an ECGD guarantee to cover new or further investment in South Africa will in addition to satisfying the underwriting conditions have to give undertakings to promote the adoption of the policy and practices recommended in the Code of Practice.