§ 3.42 p.m.
§ THE EARL OF SELKIRKMy Lords, perhaps at this point, with the permission of the House, I may intervene to make a statement on the amendment of the Trustee List similar to that made by my right honourable friend the Financial Secretary in another place. The House may recollect that this matter was the subject of one of the important recommendations of the Committee on Charitable Trusts, of which the noble Lord opposite, Lord Nathan, was Chairman. The statement is as follows:
"The Government have given careful consideration to the suggestion of the Committee on the Law and Practice relating to Charitable Trusts (the Nathan Committee) that the range of investment authorised for trustees of all kinds should be extended. In particular, the Committee suggested that the range should comprise (subject to certain safeguards) the debentures and stock and shares (including equity stock and shares) of financial, industrial and commercial companies quoted on the London Stock Exchange. The Committee also suggested that trustees should be permitted to invest in authorised securities standing at a premium.
"In the opinion of the Government, the proposal for a general extension of the range of investment to include equity stocks and shares is open to serious objection. The very considerations which in some circumstances would lead to the enhancement of the trust funds might in other circumstances lead to considerable losses, and the Government has to recognise the possibility that the inclusion within the Trustee List of securities hitherto excluded might be regarded by the general public as conveying a measure of official guarantee of their suitability for investment. The object of the Trustee List is to ensure the safety of the trust funds in cases where, for example, the settlor has not thought fit to give a wider power of investment. Its purpose is not to offer wider opportunities to trustees to exercise the skill in investment which the management of investment in equity securities continually requires. The List also affords 1096 a protection for trustees who have to balance the interests of tenants for life against those of remaindermen. Furthermore, trustees of existing trusts can already obtain extended powers of investment either by agreement with the beneficiaries (in certain cases) or by leave of the High Court. The Government's conclusion is that any general extension of the powers of investment of trustees would not be desirable.
"As has been outlined in paragraph 17 of Command Paper 9538, the Government have it in mind to take powers to simplify the procedure by which trustees of charitable trusts can obtain wider powers of investment (on application to the Ministry of Education and the Charity Commissioners). They have given careful thought to the feasibility of introducing some similar new procedure in the case of non-charitable trusts but have reluctantly reached the conclusion that this would be impracticable. In the case of non-charitable trusts there are commonly divergent interests, the pattern of which is very varied, and considerations of a nature with which only the courts can properly deal often arise. Such difficulties are generally not involved in the case of charitable trusts, which are virtually all perpetuities.
"On the other hand, there are some minor amendments to the Trustee List which the Government propose to make. First—as the Nathan Committee suggested—the removal of the anomalous restrictions on investment in certain stocks standing at a premium. Secondly—and this is at present the subject of discussion with the representatives of local authorities—the removal of some anomalies regarding local authority stocks and mortgages. Thirdly—the inclusion of sterling securities of the International Bank for Reconstruction and Development. The Government propose at a convenient opportunity to introduce legislation to carry these proposals into effect."
§ 3.48 p.m.
§ EARL JOWITTMy Lords, whilst thanking the noble Earl for his statement, may I point out that it has long been the tradition of this House that, if statements of this sort are to be made, the Leader of the Opposition and the Leader of the Liberal Party shall have some opportunity 1097 of having a sight of the statement in order that they may make, on behalf of their Parties, such comment as would seem to be useful. If we are not to have statements given to us beforehand, then I suggest that statements from another place need not be read in this House. I am sure that in this case it is a slip-up. I do not want to make an undue "song and dance" about it; on the other hand, I do not want to let this opportunity pass without saying anything about it, because it is most undesirable that statements should be made in this House, and debates interrupted, when the Leaders of the other Parties in the House have had no opportunity whatever to look at the statements even a few moments beforehand, so that they n: ay be in a position to make any comment they desire.
§ THE EARL OF SELKIRKMy Lords, I can assure the noble and learned Earl that there is not the slightest intention to interrupt the practice to which he has properly referred. I can only express my regret that, whatever the reason, the noble and learned Earl and the noble Lord, Lord Rea, did not receive a copy of the statement beforehand.
§ EARL JOWITTMistakes will happen, even in the best regulated families. I am sure that this was a mere mistake, but I thought it right to call attention to the practice which has always been observed and which I am sure the noble Earl would desire should always be observed in the future.