XN000022-1973-02-28 — Page 45

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Wednesday, February 28, 1973

condly, the Financial Secretary said, he did not consider that,

in the present circumstances, it was either necessary or prudent to

budget for other than a substantial surplus.

Mr. Haddon-Cave estimated that the extra yield from a doubling

of the rate of stamp duty levied on contract notes would be $300 million.

This, he said, would more than offset the cost of the tax

reforms and reliefs he had proposed.

He did not believe, however, that the new rate would have more

than "a slight effect" on the market.

But he sounded a note of warning that the Government was ready

to take further steps if necessary to cope with any untoward situation

in the market.

He added: "The Government will be prepared to seek emergency

powers to raise the rate of duty on contract notes immediately to cope

with any further situation that looked dangerous, if the Securities

Advisory Council recommended this as part of a package of short-term cooling

measures,1 11

Release time: 10.00 p.m.

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