§ 36. Mr. Fienburghasked the Chancellor of the Exchequer whether, in view of the demand for United Steel stock at the higher than normal interest rates offered, he will instruct the Iron and Steel Realisation Agency to offer more normal rates of interest in future issues.
§ Mr. Boyd-CarpenterAs there have until this week been no dealings in ordinary shares in steel companies since they were nationalised, there is no such thing yet as normal interest rates in relation to such shares. I am confident that the Iron and Steel Holding and Realisation Agency proposed terms for the United Steel offer that were the most reasonable in the light of all the circumstances at the time, and I have full confidence in their judgment for the future.
§ Mr. FienburghIs the hon. Gentleman not aware that the exceptionally high 1894 yield in the terms offered by the Realisation Agency was such as to produce over-demand? Is he not aware that that was, in effect, a bribe to investors to invest in this industry? Why should not the normal laws of supply and demand operate, and the price be increased or the yield be reduced for further issues of steel shares?
§ Mr. Boyd-CarpenterUnless it is contended that any successful issue is a bribe to somebody, I cannot follow the hon. Gentleman's reasoning.
§ Mr. JayIs not the Financial Secretary aware that according to the whole of the financial Press the yield on the shares exceeded that of comparable industrial shares? Why should the Government sell these shares at below the market price?
§ Mr. Boyd-CarpenterAs my original answer made clear, there are not, at the moment, any comparable industrial shares and so, with great respect to the right hon. Gentleman, that question does not arise.
§ 63. Mr. Jayasked the Chancellor of the Exchequer whether his attention has been called to the terms on which shares in the United Steel Company have been sold to private investors; and if he is satisfied that the public interest is adequately safeguarded.
§ Mr. Boyd-CarpenterYes, Sir.