§ Mr. Roseasked the First Secretary of State and Secretary of State for Economic Affairs what inquiries are being undertaken with a view to creating a satisfactory system of dividend control within the context of a prices and incomes policy.
§ Mr. William RodgersThe general movement of dividends is considered by the National Economic Development Council in the course of its periodic reviews of productivity, prices and incomes. As my right hon. Friend the First Secretary informed the House on 4th May, we are keeping a close watch on the dividend figures and will take further action if that seems necessary. The new Corporation Tax system will, of course, provide an incentive to companies to plough back their profits.