HC Deb 07 April 1959 vol 603 c15
27. Mr. Stevens

asked the Chancellor of the Exchequer if, in order to reduce the net cost of administration of bankruptcy and winding-up proceedings, he will consider making provision for the investment in equity shares of moneys arising in these circumstances and deposited with the Board of Trade.

Mr. Erroll

The whole question of the investment of these funds is at present under review.

Mr. Stevens

Is my hon. Friend aware that in recent years a number of highly-respectable institutions, such as insurance companies and the Church Commissioners, have so changed their policy? Is he further aware that that policy is likely always to be profitable, as industry keeps so vigorously prosperous under a Conservative Government?

Mr. Erroll

While agreeing with my hon. Friend's general contention, I must point out that these funds are withdrawable on demand, and are normally withdrawn after comparatively short periods. It is, therefore, necessary to invest in very liquid stocks, and equity capital would not be suitable for this.

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