§ Mr. Leeasked the Chancellor of the Exchequer if he is satisfied that the circumstances under which the tap stocks were sold on 22 February were satisfactory; and if he will make a statement.
§ Mr. Denzil DaviesThe most notable circumstance surrounding the sale of the two gilt edged stocks on 22 February was a remarkable improvement in market368W sentiment between the time of the announcement on 16 February and the date for application. This resulted in the very large over-subscription and the associated disturbances. The Government are constantly looking for ways of improving the conduct of monetary policy that could help to reduce market volatility and the Government's own borrowing costs. As far as the administrative procedures used by the Bank on 22 February are concerned, these followed the Bank's normal pattern, although I understand that it is reviewing its administrative arrangements to see whether improvements can be made.
§ Mr. Leeasked the Chancellor of the Exchequer if the rate of profits made by dealers in Government securities on 22 February were in breach of Government incomes policy; and if he will publish in the Library the list of successful stock applicants and estimates of profits made before tax in each case.
§ Mr. Denzil DaviesThe Government's incomes policy does not extend to profits and losses made on dealings in securities. For reasons of personal and commercial confidentiality, the Bank of England does not make available lists of successful stock applicants.