§ Mr. Nott
asked the Chancellor of the Exchequer (1) why the Sinking Fund on Redemption 3 per cent. 1986–96 has not been applied since 1971 to the purchase of stock; and in whose interests is the Sinking Fund being operated;
(2) what protection do the holders of Redemption 3 per cent. 1986–96 receive 504W from the operation of the Sinking Fund on this stock.
§ Mr. Dell
The Sinking Fund is operated for the sole purpose of redeeming the outstanding stock within the period provided in the prospectus. In 1971 the investments held by the fund were deemed by the Treasury sufficient to provide for the redemption of the whole of the outstanding stock. Thus the stockholders are fully protected as regards redemption at par between 1st October 1986 and 1st October 1996.