HL Deb 25 March 1958 vol 208 cc389-90

2.59 p.m.

LORD CONESFORD

My Lords, I beg to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether the Capital Issues Committee have disclosed to the Chancellor of the Exchequer the principles on which they make their decisions; and, if so, whether Her Majesty's Government will state what those principles are.]

THE FIRST LORD OF THE ADMIRALTY (THE EARL OF SELKIRK

My, Lords, the Treasury have been empowered to control the issue of capital since 1939. They have exercised this control on the advice of the Capital Issues Committee. The task of the Committee has been to apply certain general principles of economic policy laid down by the Chancellor of the Exchequer to individual cases. A White Paper was published in May, 1945, giving the broad principles on which the Committee would give its advice to the Chancellor of the Exchequer. These principles have been changed from time to time to meet current economic requirements and the terms of letters to the Chairman have been published in Answers to Questions in Parliament. It is not an easy task to apply general economic principles to individual cases, but in the opinion of successive Chancellors of the Exchequer, Lord Kennet and his colleagues have exercised their duties with understanding and ability.

LORD CONESFORD

My Lords, may I thank my noble friend for that full Answer. May I ask this further question? If, as I understand from the Answer, the principles on which the Committee exercise their powers are understood by Her Majesty's Government, could they perhaps be made more intelligible to the City and to Parliament?

THE EARL OF SELKIRK

My Lords, I think they are easily intelligible. I said that they are difficult to apply in individual cases, but I think that that will inevitably be the case. However, I should have thought that those who practise in this matter—and I believe a number of people do—could reasonably understand and forecast the result of the applications.

LORD WILMOT OF SELMESTON

My Lords, would it not be wise, in view of the length of time that has elapsed since the publication of the White Paper and the numerous modifications which have been made by way of correspondence, to publish a new White Paper giving those principles as they are now?

THE EARL OF SELKIRK

My Lords, I will certainly see that my right honourable friend bears that point in mind, which I think has a certain force.