Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 23 June 1964.
Mr Maurice Edelman
, Coventry North
12:00,
23 June 1964
asked the Chancellor of the exchequer whether he is satisfied that his powers are adequate to control foreign investment in British industry when the public interest requires that it should be so controlled; and if he will make a statement.
Mr Reginald Maudling
, Barnet
Yes, Sir.
Mr. Eldelman:
But will the Chancellor of the exchequer consider whether he is effectively exercising powers under the Exchange Control Act which was introduced by a Labour Government? Is he aware that in his statement on 8th June ho said that the Rootes family and their associates will continue to hold 50 per cent. of the voting shares, but is it not the case that the Rootes family and its associates held only 56 per cent. of the voting shares and as Chrysler has now already acquired 30 per cent. of the shares, does not this suggest that Chrysler will become very shortly the dominant shareholder in the Rootes company?
Mr Reginald Maudling
, Barnet
No, Sir. I think that the hon. Member will find that the facts as I set them out are quite accurate.
Mr James Callaghan
Shadow Chancellor of the Exchequer, Member, Labour Party National Executive Committee
Can the right hon. Gentleman say whether under the Exchange Control Act Chrysler is prevented from acquiring further securities because of a legal sanction, or is it because it has entered into an undertaking with the Chancellor or with Rootes not to do that?
Mr Reginald Maudling
, Barnet
Chrysler entered into an undertaking with me. Before I gave my Answer of 8th June I had required an undertaking of that kind, which was part of my sanction of the deal.
Mr James Callaghan
Shadow Chancellor of the Exchequer, Member, Labour Party National Executive Committee
Is it not a fact that if this undertaking were not kept through the sale by Rootes of shares to someone else there would be nothing in the Exchange Control Act to prevent Chrysler from purchasing shares and so acquiring control of Rootes?
Mr Reginald Maudling
, Barnet
I had thought of that one. I asked for and obtained an undertaking that the Chrysler Corporation would not acquire any more Rootes shares other than by means involving Treasury consent.
Mr Patrick Gordon Walker
, Smethwick
If this kind of investment is such a good thing, why does the right hon. Gentleman impose any restrictions on it at all?
Mr Reginald Maudling
, Barnet
Of all the questions that have come from the Opposition, that is about the silliest I have heard.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.
The Opposition are the political parties in the House of Commons other than the largest or Government party. They are called the Opposition because they sit on the benches opposite the Government in the House of Commons Chamber. The largest of the Opposition parties is known as Her Majesty's Opposition. The role of the Official Opposition is to question and scrutinise the work of Government. The Opposition often votes against the Government. In a sense the Official Opposition is the "Government in waiting".
