HC Deb 21 October 1969 vol 788 cc934-5
13. Mr. Biffen

asked the Chancellor of the Exchequer what proposals he has to issue a further Government stock involving borrowing for 25 years at 9 per cent. annual interest.

Mr. Taverne

My right hon. Friend has no such proposals. Hon. Members will have seen that the latest issue of long-dated stock was at 8¾ per cent.

Mr. Biffen

The hon. and learned Gentleman must know that the 8¾ per cent. stock was issued at 96 and is now on a running yield of over 9 per cent.? Is it not absurd to be refinancing maturing debt at these fancy rates of interest over such a long period of time?

Mr. Taverne

I am sure that the hon. Gentleman would be one of the first to appreciate that in the case of any issue of Government stock, it must be issued at the going rate. That is why this stock was issued at 8¾.