HC Deb 10 December 1946 vol 431 cc972-3
50. Mr. Nigel Birch

asked the Chancellor of the Exchequer whether in view of the anxiey caused to holders of Government guaranteed securities due to the treatment of L.P.T.B. 3 per cent. Guaranteed Stock, he will give an assurance that the terms of issue will be observed in the case of all other Government guaranteed securities.

Mr. Dalton

The guarantee would be implemented if default were to take place on this or any other Government guaranteed security.

Mr. Birch

Does the right hon. Gentleman realise the far-reaching nature of the repercussions of this particular decision, and does he realise the effect it might have on money raised under Section 2 of the Borrowing (Control and Guarantees) Act?

Mr. Dalton

I have not noticed any particular repercussions of great magnitude in Stock Exchange quotations.

Sir John Mellor

Will not the Chancellor of the Exchequer agree that the Treasury guaranteed these stockholders 3 per cent. on their money until 1967, which they are not going to get, and therefore, in their view, there has been a repudiation of that guarantee?

Mr. Dalton

I hope that reasons to show they are wrong will be given when the Transport Bill is debated.

Mr. Gallacher

They will get too much anyhow.