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AMENDMENT OF THE LAW

As my hon. Friend points out, we get more than the amount that goes out. The hon. Member for Macclesfield (Sir Nicholas Winterton) alludes to an important matter, however. The Committee will also consider whether there is too much takeover activity and the benefits of such activity in the long term. Our inquiries will focus on the long-term interests of the country regarding economic performance. If companies are taken over, what will be the arrangements for monitoring them? What is the incentive to monitor a company if the bulk of its ownership is made up of small shareholders? Private equity seems to be in the middle of publicly quoted companies and private companies. Many private companies in this country do not need to report on a quarterly basis and are doing a fantastic job. An example is JCB diggers. I hear that it does not receive advice from City accountants and investment managers about things that it should do be doing, but focuses on the quality of the product that it is selling. I would like to see more of that in our country—I am sure that the hon. Gentleman agrees.