§ Mr. Sedgemoreasked the Chancellor of the Exchequer (1) if the recent GEC share deal comes within the terms of the social contract; and if he will make a statement;
(2) how much money GEC and its subsidiaries have received from the Government in the past 10 years; and if he will detail the various grants and subsidies and loans.
§ Mr. Skinnerasked the Chancellor of the Exchequer whether payment of capital notes totalling £178 million by the GEC company to Sir Arnold Weinstock and other shareholders of that company is in accordance with the social contract; whether the Treasury have agreed the payments; and if he will make a statement.
§ Mr. Joel Barnett,pursuant to his replies [Official Report, 17th January 1977; Vol. 924, c. 49–50], gave the following information:
The Government are not responsible for the actions of GEC, but in the current economic situation of the country, we 112W should like to see companies with strong financial reserves using them to develop profitable new investment projects and to create new jobs. The recently announced issue of capital notes by GEC is not a dividend distribution and does not require Treasury approval. The larger payments of regional development grant and of assistance under Sections 7 and 8 of the Industry Act 1972 are published from time to time in "Trade and Industry".