HC Deb 25 March 1958 vol 585 cc208-10
20. Mr. H. Fraser

asked the Chancellor of the Exchequer whether, in view of the unconflicting needs of reflating markets dependent on primary production and checking inflation in the United Kingdom, he will now instruct the Capital Issues Committee to assist Colonial and Commonwealth Governments and private companies in their use of the London capital market.

Mr. Amory

No further instruction is necessary. After the Commonwealth Economic Conference in 1953, the Committee was asked to take note of the Government's undertaking to make a special effort to provide additional capital for Commonwealth development by facilitating the financing of schemes in other Commonwealth countries which would contribute to the improvement of the sterling area's balance of payments. This request has not been withdrawn.

Mr. Fraser

Surely, my right hon. Friend will agree that certain Colonial Governments have tried to approach the London capital market recently and have not been allowed by the Capital Issues Committee to do so. Is not this precisely the time when we should be doing things in the Colonies to build up areas when there is recession?

Mr. Amory

My hon. Friend will know that the demands are very greatly in excess of resources available. The Capital Issues Committee has a very difficult job to do, and I believe that it is doing it extremely well.

37. Mr. Osborne

asked the Chancellor of the Exchequer if he is aware of the criticism being directed against the Capital Issues Committee, on the grounds that its attitude is dictatorial and its decisions, for which it refuses to give any reasons, capricious; and if he will investigate the methods and machinery of the Committee and make a statement.

Mr. Amory

I am aware that from time to time there has been criticism of Treasury decisions taken after the Committee has given advice, but this has usually been misconceived. I have full confidence in the Committee and I see no reason to make any special investigation.

Mr. Osborne

Is not my right hon. Friend aware that the City regards some of the decisions as absolutely amazing? Since they have caused a good deal of dismay, will my right hon. Friend ask the Committee to reconsider whether it could not give reasons for some of its decisions?

Mr. Amory

The Committee inevitably has to turn down some cases and when one is turned down I know how easy it is to regard the decision as amazing, as my hon. Friend has said. I repeat, however, what I said earlier, that I have complete confidence in the Committee and that I believe it is carrying out its very difficult work extremely well.