§ 37. Mr. P. Browneasked the Chancellor of the Exchequer if he will consider redeeming 3½ per cent. War Loan at par or purchase price where the stock was bought before 1950, and where it can be shown that the depreciation in value is causing hardship to those of pensionable age.
§ The Economic Secretary to the Treasury (Mr. Anthony Barber)Any action of this kind would be a departure from the conditions of issue which are and have always been the basis of dealings. One of the foundations on which the gilt-edged market rests is the long-established and hitherto unbroken rule that the Government honours the terms of issue of its stocks without exception or variation. To break this rule now in favour of some or all present holders of War Loan would be unfair to past holders who based decisions to sell their holdings on the assumption that no such action would be taken, and it would also be unfair to holders of other Government stocks. I am afraid that I can hold out no hope of the Government taking action on the lines that have been suggested.
§ Mr. BrowneI thought that all rules were made to be broken. While I appreciate the difficulties, I ask my hon. Friend to realise that this stock has depreciated in real value by over 60 per cent. since the war and that there are many holders in small amounts, particularly elderly people, who are suffering hardship as a result? Would he at least consider dating this stock?
§ Mr. BarberLike his predecessor, my right hon. and learned Friend has considered this and many other suggestions which have been made with similar objects in view, but I am afraid that the objections are overwhelming, and it is for that reason that, reluctantly, I must tell the House that I can hold out no hope of any change.