§ Mr. Cantasked the Chancellor of the Exchequer whether, in view of the uncertainty surrounding the future of dividend control and its effect on industry in 591W securing additional capital through rights issues or contesting take-over bids, he will make a further statement.
§ Mr. HealeyThe legislation under which dividends are controlled expires on 31st July 1978. It is too early yet to consider whether any legislation on dividends might be needed as part of counter-inflation policy when the present round comes to an end. If, however, there were to be new legislation, I would propose to continue the existing provisions relating to the raising of new capital and to defence against takeover bids, as well as the other provisions whereby companies may pay dividends above the statutory limit.