§ 46. Mr. Pethick-Lawrenceasked the Chancellor of the Exchequer whether he is now prepared to lift the ban on the conversions of local authorities?
§ Sir J. SimonI will, of course, continue to give careful consideration to this question, but I am afraid that the time has not yet come at which any general statement can be made on the question when issues for fresh money or conversion of trustee securities can be safely authorised.
§ Mr. Pethick-LawrenceMay I take it from the answer that the Chancellor will give consideration to special cases on their merits with a view to relieving the ratepayers of a wholly unnecessary burden?
§ Sir J. SimonI should like, of course, to relieve any burden which the ratepayers have to suffer in this matter, but the right hon. Gentleman will appreciate that, generally speaking, there is not at present an opportunity for any issues except for absolutely essential purposes.
§ Mr. Pethick-LawrenceDoes not the right hon. Gentleman realise that if the terms of conversion are properly arranged then; need be no question of issues of fresh money, and that in such cases the whole of the money would be taken up by the existing holders?
§ Sir J. SimonIf there is no need for fresh money, there is no objection at all to local authorities, out of the resources they have, paying off their loans, but, of course, nobody can guarantee that there is no need for fresh money because in conversion operations the holders are given a choice between converting and taking cash.
§ Mr. ThorneMay I ask whether the local authorities have to make application to the Chancellor to get this permission?