HC Deb 15 March 1932 vol 263 cc181-2

asked the Chancellor of the Exchequer if he will make representations to those Governments represented at the Ottawa Conference as to the desirability of setting lip a guarantee pool or fund for the purpose of meeting or preventing the hardship imposed upon small holders of securities on the Treasury trustee list by default in one payment of interest, such as was the case arising from the default by the New South Wales Government upon their loans on the Treasury trustee list?


asked the Chancellor of the Exchequer whether he wil1 bring before the Ottawa Conference the question of Dominion loans included in the Treasury list of trustee stocks in the light of changed circumstances affecting the Colonial Stock Act, 1900, as brought about by the default a few weeks ago of the New South Wales Government on their loans?


I understand that legislation has now been passed by the Commonwealth Parliament, providing for the assumption by the Commonwealth Government of direct liability to bondholders in respect of the debts of a State Government. In the circumstances I see no necessity for any such action as is suggested.