§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer if he will set out in detail the considerations which led the Treasury to approve the payment by Pergamon Press of a dividend which exceeds the Government's 3½ per cent. increase limitation.
§ Mr. DiamondThe company issued ordinary shares in exchange for cash in a transaction carried through prior to 19th March, 1968. The price at which the shares were transferred was based on a commitment by the company to a final dividend rate of 40 per cent. Documentary proof to this end was provided by the company.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will give the reasons why, in the case of 310W Pergamon Press and other companies, he has allowed dividend increases above the Government's recently proposed policies, whereas in other cases, such as The Empire Stores Limited, these have been refused.
§ Mr. DiamondThe guidelines of dividend restraint policy are set out in two statements issued by the Treasury on 19th March and 25th March, 1968. All cases have been considered in the light of these, and permission for increased distributions given or withheld accordingly. Pergamon Press had entered into a firm commitment in respect of the final dividend before 19th March.