HC Deb 31 March 1960 vol 620 cc1500-1
36. Mr. Grimond

asked the Chancellor of the Exchequer, in view of the difficulties of the market for long-term Government loans and the fact that no further investigations are proposed, what steps he proposes to take to restore confidence in the Government's long-term financial credit.

Mr. Barber

The health of the gilt-edged market, and of "Government credit", depends on general confidence that stability of the currency will be maintained. With this objective the Government will continue to follow sound general economic and financial policies.

Mr. Grimond

I realise that the Treasury is in a slightly distracted state just now, but I cannot help thinking that the hon. Gentleman's Answer is a little queer. If the state of the gilt-edged market is a barometer of the Government's standing and credit, the barometer has fallen to "low." Should not the Government be thinking seriously about this matter and possibly considering some new ways of financing the nationalised industries by taking some of them off the market and by introducing some equity element into the financing of these industries?

Mr. Barber

If I may say so with respect, a question of that kind raises most complex issues and, as we are to have a discussion on this matter, among others, next week, I do not think that I can answer it this afternoon.

Mr. Jay

Is not the hon. Gentleman making light of the strong feeling among small savers on this subject? Is not the real cause of the trouble the excessive reliance of the Government on a dear money policy?

Mr. Barber

I do not accept what the hon. Gentleman said in the latter part of his supplementary question. I assure him that my right hon. Friend and I share the concern which he feels for those people who have to face these difficulties.

Mr. Jay

But are the Government going to take any action?