§ Mr. Nelsonasked the Chancellor of the Exchequer what is his policy towards the appointment of merchant banks to undertake corporate finance work for companies wholly or partially owned by the State.
§ Mr. RidleyNationalised industries and other publicly-owned undertakings are free to engage merchant banks as advisers where they consider it necessary. In such circumstances the choice of bank is a matter for the industry. However, when the Government are selling assets, and merchant bank expertise is considered necessary to carry out the sale, banks are invited to tender for the work on the basis of preliminary studies. The Government retain that bank which they consider will do the best job and provide the best value for money. These procedures are kept under review in the light of experience.