§ Mr. Freethasked the Chancellor of the Exchequer under what circumstances the Capital Issues Committee grants permission to investment trusts for new money to be raised by an issue of shares; and how far such consent is conditional upon investment trusts guaranteeing not to invest any of the money so raised in Canadian or United States securities.
§ Mr. MaudlingSince July, 1953, the Committee has been free to recommend consent in respect of applications from investment trusts, in view of the part which these companies play in supplying risk-bearing capital for industry, and of the need to encourage savings. When consent is given no condition is imposed about the use of the money to be raised, and the fact that some part of the money will be invested in foreign securities does not necessarily mean that the application will be refused; but, in considering whether to recommend consent, the Committee naturally bears in mind the claims on the market of United Kingdom industry.