SIR,—In his article on the pamphlet Everyman a Capitalist Mr.
N. Davenport writes, 'If Sir Toby's Committee would have another look at our mixed economy they ought to see how undesirable it is to encourage industrial workers to have a stake in the industries which employ them' My reply must be—if Mr. N. Davenport will have another look at our pamphlet, on page 12 he will find that we deal with this point. In the pamphlet he Will also find the answers to his points of criticism, and in particular that we did not suggest 'bribing' anyone to invest in equities. We specifically depre- cated that. Our case is that we want to remove the Measure of disparity in tax treatment of small savings that go into industry compared with those that go into the Exchequer.
Mr. Davenport does not want to do this unless through a State-run fund. We were opposed to the State having this enormous power over investment; the Socialists and. Mr. Davenport are not. We were also anxious to secure the advantage for the small investor of freedom of choice of particular Industrial Investment Certificates and diversity of management and investment decision.
. Haw easy it is to pick holes in schemes for extending the opportunity to invest. I well recognise the disadvantages of some of the detailed proposals set out in Everyman a Capitalist, but I am still con- vinced that that scheme provides the best framework so far suggested. Of course we can go on as we are— no radically new step, no tax relief. Gradually more and more people will invest—as has been happening recently.,But I want to hasten the process and I am not frightened of a more radical approach.—Yours
House of Commons, SW 1
[Nicholas Davenport writes : 'Sir Toby Low's pam- Phlet certainly dealt with the points I raised, but in my view not adequately. If he cannot see that it is un- desirable "to remove the measure of disparity in tax treatment of small savings going into industry as com- pared with those going into the Exchequer," I give up. 1tnagine a Labour Government meeting with fierce °Pposition from Sir Toby's pamphleteers urging in- vestment into industrial equities. How could it then attract small savings if it did not offer some tax advantage? Sir Toby must think again.'—Editor, SPectatar.)
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