§ 32. Mr. Hordernasked the Chancellor of the Exchequer whether he is aware of the undertakings given by the Iron and Steel Holding and Realisation Agency, a Government-sponsored body, concerning the price at which shares and stock were to be redeemed if they were so redeemed before their respective final redemption dates; and if he will honour these undertakings.
§ The Chancellor of the Exchequer (Mr. James Callaghan)No. I am not aware of any such undertaking.
§ Mr. HordernDoes not the Chancellor of the Exchequer appreciate that these undertakings were given by a Government-sponsored body and that they are regarded as a contractual debt on the Government? Does he not realise that the repudiation of this debt does more damage to confidence in the Government and in sterling than anything else that the Government can do?
§ Mr. CallaghanThat simply is not true. The Agency sold the shares. It did not assume the obligations. The obligations were the responsibility of the companies which issued the shares.