§ Mr. Leachasked the Chancellor of the Exchequer whether he is aware that the current quotation for the recent City of Bradford Conversion Loan is 105½; that the rate of interest was fixed at 3½ per cent. without reference to or consultation with the council; and will he, in all future municipal conversions, ensure that the Government's own borrowing rate shall hold good for all the leading local authorities?
§ Sir K. WoodThe quotation is that for City of Bradford 5 per cent. Stock which the holder has agreed to convert into 3½ per cent. Stock 1972–82 as on the 1st April next, and included in this price is the right to receive the six months' interest at 5 per cent., namely, £2 10s. due on that date. The terms of the conversion offer were fixed in accordance with the procedure adopted in April, 1941, under which the Treasury has in effect underwritten the conversion of local authorities securities carrying a high rate of interest. These terms were based on the prices of comparable stocks at the time when the operation was arranged, a uniform basis being adopted for the local authorities concerned. It would not be practicable to accept the suggestion in the last part of the Question.