Skip to main content

Cable And Wireless, Ltd (Compensation)

Volume 462: debated on Tuesday 1 March 1949

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer how he proposes to satisfy the compensation awarded for Cable and Wireless Limited.

The compensation payable to the various companies forming part of the Cable and Wireless (Holding) group under the award of the Tribunal announced on 26th February, 1949, is £32,195,000. The Cable and Wireless Act, 1946, provides for this compensation to be satisfied by the issue of such amount of Government stock as is, in the opinion of the Treasury, of a value equal on the date of issue to the amount of the compensation, together with interest for the period beginning with the appointed day (namely, 1st January, 1947, the day on which the shares of Cable and Wireless Limited were transferred to the Treasury) and ending immediately before the date of the stock issue.The Treasury has determined that the following amounts of stock are equal in value to the compensation of £32,195,000 on 1st March, 1949: 3 per cent. Savings Bonds, 1960–70, £15,676,202 1s. 5d., 3 per cent. Savings Bonds, 1965–75, £15,762,545 18s. Accordingly, as from 1st March these amounts of stock have been created and issued to the companies of the Cable and Wireless (Holding) group to whom the compensation is due. At the same time, a cash payment of £2,087,823 14s. has been made to the same companies, being interest on the £32,195,000 of compensation calculated at 3 per cent. for the period from 1st January, 1947, to 28th February, 1949.