Initial Government Holding In Successor Company
I beg to move amendment No. 77, in page 34, line 34, at end insert—
The purpose of the amendment is to prevent the sale of more than 5 per cent. of the shares in the National Freight Corporation to any one person and so to ensure a spread of ownership when the Government's holding in the NFC is dispersed and make certain that no one obtains a dominant position. The operation of the NFC is commonly agreed in the House, by people who have followed its activities closely, to be efficient, and it is more likely to remain that way if the ownership is spread. That is why we are proposing the amendment.'(4A) Where the Minister proposes to exercise any power to dispose of shares in the successor company he shall not issue or register to any person or nominee of that person more than 5 per cent. of the shares in the company, and any shares issued or registered in contravention of this subsection shall be deemed for all purposes to be owned by the Minister.'.
Although I have some sympathy with the purpose underlying the amendment, I am afraid that the Government cannot accept it. It is certainly the intention, in accordance with normal practice, to give preference to small applications in the event that the initial offer for sale is oversubscribed, but I do not agree that it would be desirable to impose a maximum limit on the proportion of shares any applicant can purchase. Such a limit might deter some institutions from subscribing and might result in some shares on offer not being taken up. I see no reason why the Government should be subject to special restrictions in this respect and thus risk securing a poorer return for the taxpayer than could otherwise be obtained.
Will the Minister give an assurance that the terms and conditions of service and rates of pay of employees of the NFC will not be undermined in the event of the Government's policy being carried out?
That takes us back several hours to an earlier debate. I can only refer the hon. Gentleman to what was said then, when we went over this question in some detail. We are dealing now not with that question but with the amendment proposed by the right hon. Gentleman. I do not believe that it is justified, and I fear that we cannot accept it.
Amendment negatived.