HC Deb 04 February 1959 vol 599 cc91-2W
Mr. Osborne

asked the Chancellor of the Exchequer whether he will make a statement about the control of borrowing and of issues of capital.

Mr. Amory

The Treasury have today given a general consent under the Control of Borrowing Order, 1958 as follows:

  1. 1. The Treasury, in pursuance of their powers under the Control of Borrowing Order, 1958, hereby give general consent for the purposes of that Order (subject to the exceptions and conditions hereinafter contained) to the following transactions, that is to say:
    1. (a) the borrowing of any money;
    2. (b) the raising of any money by any body corporate by the issue of shares;
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    3. (c) the issue by any body corporate of any shares or other securities;
    4. (d) the raising of any money for the purposes of a unit trust scheme by the issue of units under the scheme, and the issue of any units under a unit trust scheme
  2. 2. Notwithstanding anything contained herein, the consent hereby given shall not apply to:
    1. (a) the issue by any body corporate of any redeemable shares or other redeemable securities if the purposes or effects of the transaction consist of or include the capitalisation of profits or reserves;
    2. (b) the issue by any body corporate of any shares or other securities if the purposes or effects of the transaction consist of or include the exchanging or substituting of new securities for redeemable securities already issued by the body corporate, unless such new securities are not redeemable or are redeemable not earlier than the earliest date on which the securities already issued are redeemable;
    3. (c) any transaction effected by or on behalf of a person resident outside the United Kingdom; or
    4. (d) any transaction effected by a local authority
  3. 3. Notwithstanding anything contained herein, the consent hereby given shall not apply to the issue of any securities in which a trustee may invest trust funds under the powers of Section 1 of the Trustee Act, 1925, and any enactment amending or extending that Section (not being securities of the description specified in paragraph (b) of sub-section (1) of that Section) unless the terms on which the securities are to be issued have, before the making of the issue, been approved by the Bank of England (on behalf of the Treasury)
  4. 4. Notwithstanding anything contained herein, the consent hereby given shall not apply to the issue of any securities where the amount of the money to be raised by the issue is not less than one million pounds, unless the time at which the securities are to be issued has, before the making of the issue, been approved by the Bank of England (on behalf of the Treasury)
  5. 5. This consent shall come into operation on the fifth day of February, 1959
Dated this fourth day of February, 1959. Michael Hughes-Young, P. E. O. Bryan, Two of the Lords Commissioners of Her Majesty's Treasury.