§ Mr. Michael Footasked the Chancellor of the Exchequer if he will make a statement about the division of Richard Thomas and Baldwin's capital as between loan capital and ordinary shares.
§ Mr. CallaghanYes. With the agreement of the Iron and Steel Holding and Realisation Agency and the Treasury, Richard Thomas and Baldwins Ltd. has increased its issued share capital to £100 million by conversion of £39 million of the Agency's loan to the company into an equivalent amount of ordinary share capital. A similar conversion of £50 million was authorised in 1963. At 2nd October, 1965, the company's loan capital, excluding temporary borrowing, amounted to £140 million, compared with share capital and reserves of £83.8 million. The object of the present change is to bring the gearing of Richard Thomas and Baldwin's capital more into line with that of other major steel companies in the interval before they are nationalised.