HC Deb 25 January 1945 vol 407 cc991-2W
Colonel Lyons

asked the Secretary of State for the Colonies whether he will examine the terms and charges for expenses in connection with the issue of long term public loans guaranteed or non-guaranteed made by Colonial Governments for the past 20 years or more, to see whether more economical arrangements in the case of any new loans in the future can be arrived at.

Colonel Stanley

The terms of issue of Colonial loans have always been carefully considered in relation to conditions at the moment of issue and the rates of interest paid, although on some past occasions they have been high by present-day standards, they have been closely related to the rates prevailing at the time for giltedged securities. I have no doubt that it will continue to be the practice to examine the terms whenever the necessity presents itself for raising a loan with a view to ensuring that the arrangements are the most economical that can be secured. There is no new Colonial borrowing at present, but in the case of a recent conversion loan, it was possible to secure terms of 3 per cent., and I am satisfied that those terms and the expenses of the issue were reasonable.