§ 41. Sir H. d'Avigdor-Goldsmidasked the Chancellor of the Exchequer whether his decision to convert £50 million of the debt of Richard Thomas and Bald-wins into ordinary shares at par was supported by an independent valuation; and what benefit will accrue to the revenue from the debt relief granted to this company.
§ Mr. MaudlingThe Iron and Steel Holding and Realisation Agency consulted the financial advisers of Richard Thomas and Baldwins Ltd. before approval was given to the capital re-organisation of the company. Since R.T.B. is a wholly-owned subsidiary of the Agency the issue price of the new shares does not affect the value of the Agency's total investment in the company. As regards the second part of my hon. Friend's Question, at current interest rates the company will save about £2¼ million in interest payments128W annually. There will be a corresponding reduction in the company's borrowing requirement from the Agency.