§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer if he will give details of the pattern of capital distributions to shareholders in Burmah Oil and Castrol Limited prior to 1967 which led 12W him to conclude that the capital distribution in 1966 should be included for the purpose of calculating the consistency of Burmah Oil's 1967 distribution with the Government's proposed ceiling on dividend increases.
§ Mr. DiamondRecent capital dividends paid by Burmah Oil Company Limited are as follows:
- 1963: 3d. per £1 unit.
- 1964: 3d. per £1 unit.
- 1965: 2.6175d. per £1 unit.
- 1966: 3.3825d. per £1 unit.
§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer why he accepts the 28 per cent. increase in total distributions by Capper-Neill, the 17.5 per cent. increase in total distributions by John Martin of London, the 16 per cent. increase in total distributions by Tudor Jenkins, and the 36 per cent. increase in Shipping Industrial Holdings as being consistent with the Government's proposed ceiling on dividend increases; and if, in the last case, he would specify the nature of the formal commitment regarding distribution entered into prior to the Budget.
§ Mr. DiamondCapper-Neill Limited gave an undertaking at the time of a rights issue made prior to the Budget to pay a final dividend of 16 per cent. John Martin of London Limited agreed not to exceed the level of an earlier year. Tudor Jenkins and Company Limited did not pay a greater amount to shareholders than for the previous year, after allowing for the ranking for dividend of Deferred Ordinary Shares for the first time. The Board of Shipping Industrial Holdings Limited formally and publicly recommended before the Budget the final dividend to be paid.
§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer whether the 20 per cent. increase in total distribution by Ada (Halifax), the 3.8 per cent. increase by Airborne Industries, and the 11 per cent. increase by Mitchell Construction Holdings, are in conformity with his proposed dividend ceiling; if he will publish, in each case, the actuarial calculations on which his decision is based; if he will inform these firms that the ceiling has no legal basis; and if he will undertake not to prevent the distributions proposed.
13W
§ Mr. DiamondAda (Halifax) Limited issued stock in respect of an acquisition before the Budget which entailed the payment of an 18 per cent. final dividend. The excess of 0.3 per cent. in the case of Airborne Industries was allowed in error. Mitchell Construction Holdings Limited distributed no greater amount to shareholders for the year than for the previous year plus 3½ per cent.
§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer if he will define the circumstances under which, and the extent to which, the repatriation of overseas earnings by a public company is accepted as a justification for such a company exceeding the Government's proposed ceiling on dividend distribution.
§ Mr. DiamondWhere the requirements of the voluntary dividend restraint policy and the need to maximise remittances to the United Kingdom are in conflict, the Treasury will waive the requirements to the extent necessary.