Third Schedule. — (Powers of investment.) (Hansard, 19 July 1939)

§ Sir A. Southby
I do not think the Committee would wish to pass the Third Schedule and close the Committee stage of the Bill without expressing the appreciation and admiration which we all feel for the good temper and courtesy with which the right hon. Gentleman the Chancellor of the Exchequer has throughout dealt with and explained matters raised in this stage of the Bill.

§ Mr. York
Regarding the powers of the trustees under paragraphs (c) and (d) of the Third Schedule, I should like to see a Fund of this sort invested entirely and completely, as it is for the benefit of Members, in Government securities. While we oppose this compulsory scheme through thick and thin, the reason we do so is not that we begrudge the money, and I am prepared to pledge myself and I am sure that a large number of my hon. Friends would be prepared to pledge themselves, that if the Government would withdraw this Bill they would pay into a fund £ 12 every year so long as they are Members of Parliament.

§ Sir I. Albery
On this Schedule, which has to do with the powers of investment, I think it must be noticed that by the machinery of this Bill the Trustee Act of 1925 is at last recognised as completely out of date, and I trust that at some date in the near future it will be revised.

Mr. Mitchell
On that point I would like to say something about superseding the Trustee Act of 1925. I notice that they have included in the bonds that can be invested in, railway companies, regardless of whether those companies have paid3 per cent. interest on their ordinary stock as specified by the Trustee Act of 1925. I also notice that the trustees will be allowed to purchase bonds, mortgages, debentures or debenture or rent-charge stock of any railway, gas, electric light or power company in the United Kingdom, and they can also purchase the preference stock or preference shares of any such gas, electric light or power company which has paid a dividend on its ordinary stock or shares at a rate of not less than 3 per cent. during each of the five years immediately preceding the date of the investment. They have not included stocks of the tobacco and steel industry. I believe that those are likely to be better securities than some of the funds which are permitted. I notice that under the Trustee Act there is freedom to purchase Colonial bonds but in some cases like Alberta there has been a default. It seems to me that there is a strong case, in the light of further experience, action should be taken for revising the Act. It is permissible for trustees to purchase mortgages, but they are not allowed to own property itself, even though it may be left to the trust funds. Without going into any further detail I wonder whether the Chancellor of the Exchequer will consider drafting powers of this kind rather more widely. I take a contrary view to that of my hon. Friend who wished that the whole of the fund should be in Government securities for, while having every confidence in the Government, one has only to study the history of Government securities. So I trust these investments will be spread as widely as possible.