HC Deb 21 June 1938 vol 337 cc885-6
48. Mr. Assheton

asked the Chancellor of the Exchequer whether he will appoint a committee to consider the desirability of amending the Trustee Act?

Sir J. Simon

I see no sufficient reason for considering the amendment of the Trustee Act at the present time.

Mr. Assheton

Is my right hon. Friend aware that there is a very general opinion both in the City and in Lincoln's Inn that the Trustee Act should be revised in view of the fact that some of the best securities, such as those of the Port of London Authority and the Electricity Board, are not available as trustee securities and that there are so many indifferent investments, such as preference shares in some of the railways, which are available?

Sir J. Simon

My hon. Friend, no doubt, is aware that there has been a committee looking into this some years ago, and the general report of the committee was in favour of the law remaining substantially as it stands. Of course, the Trustee Act does not proclaim any list of securities but lays down certain tests to be applied to determine whether a particular security can claim to be a trustee security. That is the nature of the test, and I do not think that it could be altered in that way.

Mr. Assheton

Is my right hon. Friend aware that the circumstances have altered very considerably since that committee reported?

Mr. T. Johnston

Is the right hon. Gentleman aware that the stock of the Central Electricity Board is not now regarded as a trustee security, whereas investments in decayed property are so regarded?

Sir J. Simon

I think it is important that we should realize—and I am sure the right hon. Gentleman would agree—that the Trustee Acts do not give a list of trustee securities at all. Parliament lays down in general terms what Parliament thinks to be an adequate test, and, therefore, it has quite a general application and is not a question of any particular stock.