Southern Rhodesia Stock (Trustee Status)

HC Deb 25 January 1966 vol 723 cc25-6

44. Mr. William Clark

asked the Chancellor of the Exchequer if Southern Rhodesia Stock 4 per cent. 1972–74 has trustee security status.

The Financial Secretary to the Treasury (Mr. Niall MacDermot)

Yes, Sir.

Mr. Clark

Will the Financial Secretary explain how that can be so as no interest is being paid? Does he realise that this is causing tremendous con- cern among trustees in this country holding Rhodesian stock, as it is the first time when there has been default on a Commonwealth Stock?

Mr. MacDermot

Non-payment of interest does not disqualify the stock as a trustee investment [HON. MEMBERS: "Oh."] Those are the provisions of the Act. The Trustee Investment Act 1961 requires trustees to take advice before investing in this stock.