HC Deb 12 July 1966 vol 731 cc1210-1
37. Mr. Stratton Mills

asked the Chancellor of the Exchequer if he will direct the Bank of England, after consultation with them, to take steps to prevent a deterioration in the market in Government securities resulting from the proposal to acquire the steel industry by means of the issue of about £580 million Government stock.

Mr. Callaghan

When the time arrives I will, of course, consider what action might be necessary to accommodate the issue of compensation stock.

Mr. Mills

Has the right hon. Gentleman noted the very rapid deterioration in the gilt-edged market over the last few days, which is having the effect of pushing up interest rates to all sections of the community? Is he not far too complacent about this trend, and will he take some action on it?

Mr. Callaghan

This Question relates to a future event, namely, the position which will arise when the steel industry is nationalised.

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