§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer if he will set out in the OFFICIAL REPORT the calculations which led him to conclude that the increase in total distributions by Affiliated Cleaning Company Limited from 12. 3 per cent. to 12. 7380 per cent. did not exceed the Government's proposed 3. 5 per cent. ceiling on dividend increases.
§ Mr. DiamondThe calculations are as follows
Dividend paid for year ended 30th June, 1967 = 16 per cent.Equivalent after a 3 for 10 scrip issue = 12. 30769 per cent.Plus 3½ per cent. = 12. 73485 per cent.
§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer if, in view of the fact that he approved the restoration by Yatton Furniture Limited and by Estates and Agency Holdings Limited of total distributions to levels prevailing in 1962, he will give an assurance that any company which wishes to restore total distributions at least to levels prevailing at any time during the past six years will not be prevented from doing so.
§ Mr. DiamondThe intention underlying the provision in paragraph 54 (iii) of 487W Command Paper 3590 is that companies whose earnings have recovered after a fall should be able to restore ordinary dividends to a previous level which could be regarded as a reasonable expectation in the light of past performance. There is no rigid time limit on the period of comparison, but the Treasury need to examine all the relevant factors in each individual case.
§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer to the levels of which earlier year the total distributions by W. G. Allen and Sons Limited, Tipton, were restored in conformity with the Government's proposed dividend restraint policy.
§ Mr. Diamond1958–59.