HC Deb 25 March 1958 vol 585 cc202-3
7. Mr. Osborne

asked the Chancellor of the Exchequer how many local authorities are taking powers to invest their pension funds, in part or wholly, in ordinary shares; and if he will make a statement on Government policy as regards investment by public bodies in the light of the tendency adduced by this figure.

Mr. Amory

Three local authorities have already taken powers to invest their pension funds partly in ordinary shares; I have notice of some nine others which intend to seek them. It is not the policy of Her Majesty's Government to object to a reasonable extension of the powers of investment of pension funds where there are adequate safeguards.

Mr. Osborne

Is not this evidence that local authorities do not think that my right hon. Friend will be able to conquer inflation, or they would not be wanting to buy ordinary shares? Are there further steps he can take to put confidence into local authorities to stop this development?

Mr. Amory

If local authorities have any doubt on that matter. I think they will be much encouraged by the progress made in recent months.

Mr. J. T. Price

Is not this the clearest evidence that could possibly be advanced that trustees are now becoming seized of the idea that if they are to carry out the duties of their trusts to the benefit of the people to whom they are responsible they have to gear their activities to inflation and not rely on fixed-interest-bearing securities?

Mr. Amory

I think it would be unreasonable to refuse local authorities a limited freedom to do what they believe is in their employees' interest.