CAB129-53 — Page 241

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Page 241

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Apption to Northern Heland

Page 242. 20 he powers relating to prices will apply to sales of iron and steel in Northern Ireland as well as in Great Britain. The other functions of the Board may be applied to Northern Ireland upon the request of the Northern Ireland Parliament.

Import Duties

27. It is the Government's intention to consult the Board in regard to any proposed modifications to the import duties on iron and steel.

Report to Parliament

28. The Board will make an annual report to the Minister of Supply, who will lay it before Parliament.

III. TRANSFER OF OWNERSHIP

Holding and Realisation Agency

29. The Bill will provide for the dissolution of the Iron and Steel Cor- poration of Great Britain, and for the transfer of the securities of the nationalised companies to a Holding and Realisation Agency.

30. The Agency, which will be composed of a small number of persons possessing the necessary qualifications and experience, will be appointed by the Treasury.

31. The Agency will have the duty to secure the return of these companies to private ownership and meanwhile to ensure their efficient direction, as explained in the ensuing paragraphs.

Disposal of Companies

32. In disposing of the securities transferred to them from the Corporation, the Agency will be required to obtain the approval of the Treasury in regard to the terms of sales. Subject to similar approval, the Agency will have discretion as to the timing. Sales will start as soon as possible after the passing of the Bill. However in view of the magnitude of the financial operations involved, these may well take some years to complete.

33. Before disposal, the Agency may effect such re-groupings of the under- takings or alterations in the capital structure of companies as may be desirable. The Agency will be required to consult the new Iron and Steel Board in regard to re-groupings.

34. In deciding the price to be asked, regard will be had to all relevant factors at the time of sale. Account will have to be taken of the important changes which have taken place since nationalisation in the physical assets, capital structure, reserves and trading prospects of many of the iron and steel companies, together with other considerations such as the monetary and market conditions prevailing at the time.

35. In allocating securities offered for sale, the Agency will, notwithstand- ing the serious technical difficulties involved, give priority where practicable to applications from former shareholders.