ANNOUNCEMENT ON BANK RATE

Press, Volume XCVI, Issue 28435, 15 November 1957, Page 13

ANNOUNCEMENT ON BANK RATE

Judicial Inquiry To Be Held

(N.Z. Press Association—Copyright) LONDON, November 3.

The Government decided today to order a judicial inquiry into an alleged leakage of Treasury secrets because of insinuations made against a top Conservative Party official.

The Prime Minister (Mr Macmillan) told the House of Commons that he was taking the stop to give the official. Mr Oliver Poole, deputy chairman of the party, an opportunity of “clearing his honour.”

For weeks the Labour Opposition has pressed in vain for an independent inquiry into allegations that advance information was “leaked” in September about the Government’s decision to raise the bank rate from 5 to 7 per cent.

This led, the Opposition say, to the selling of Government and other securities on the evening before the change was announced.

In the House of Commons yesterday Labour leaders asked the Chancellor of the Exchequer (Mr Peter Thorneycroft), to say if he had seen Mr Poole on the day before the bank rate was raised.

He refused to answer this question on the grounds that it was “improper.” There was no leakage. he said.

Today. Mr Poole wrote to the Prime Minister saying that while he saw the Chancellor on the day in question he did not receive any advance information about the bank rate from anyone, nor did he sell any securities.

He asked the Prime Minister to order a judicial inquiry in fairness to himself. The Prime Minister told the House: “This is an attack on the honour of the two gentlemen— Mr Poole and the Chancellor of the Exchequer—and I think it right, that they should have an opportunity to rebutt this attack. At an earlier stage it was mere i tittle-tattle.” The Lord Chancellor. Lord Kilmuir. recently made a private inquiry for the Government and reported that there was "no evidence of a bank rate leakage.’’