Clause 2

Part of Orders of the Day — Industrial Expansion Bill – in the House of Commons at 12:00 am on 30 May 1968.

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Photo of Mr Teddy Taylor Mr Teddy Taylor , Glasgow Cathcart 12:00, 30 May 1968

I apologise, Mr. Speaker.

I would ask the Government seriously to consider whether this is the sort of investment for the people when it is not a first charge on the assets of the companies involved. There is a danger that, once an equity stock is taken, the Government will have a stake in the survival of that company, whether it is profitable or not. Having spent £5 million, say, for an equity stake, politically and economically they have a vested interest in the success of the company, come what may. It might be in its normal commercial interests to close down, but the danger is that, once £5 million of public money has gone into it, another £5 million will be added.

This is not in the national interest. It is a bad move. The House of Lords was quite right in its Amendment, and I hope that the Government will consider it. It may be good for the Government to consider it seriously, because it is probably the first of many more Amendments from the other place. Bearing in mind future Amendments on more significant Measures, it would be good training for the Government if they accepted this one and showed their good will in that way.