HC Deb 16 May 1904 vol 134 cc1396-7
MR. JOHN REDMOND

I beg to ask Mr. Chancellor of the Exchequer if the Bank of Ireland advanced £1,000,000 to the Government during the South African War; and, if so, how was this advance made; whether it was advanced free of interest, and, if not, what rate of interest was paid by the Government for this advance, and for how long; and if this £1,000,000 was derived from the Exchequer balances or other funds standing to the credit of the Government at the Bank of Ireland.

MR. AUSTEN CHAMBERLAIN

As provided for by Section 2 of the Appropriation Act, 1900, the Bank of Ireland advanced a sum of £750,000 to the Treasury on the 20th September, 1900. That advance was repaid on the 20th December in the same year, on which day the bank made a further advance of £1,000,000, which was repaid by instal-merits between 11th February and 4th March, 1901. Both advances bore interest at the rate of 3½ per cent, per annum, regard being had in fixing this rate to the current rate at which the Government could temporarily borrow. I have no means of saying from what source the bank drew money for these advances.

MR. JOHN REDMOND

Am I to understand that the Bank of Ireland, having public funds at its disposal to the amount of £1,250,000, for which it pays no interest at all, lent £1,000,000 of that to the British taxpayer and charged 3½ per cent? Will the right hon. Gentleman consider the advisability of appointing a Commission or a Committee to inquire into the relations of the Bank of Ireland and the Government?

MR. AUSTEN CHAMBERLAIN

I informed the hon. and learned Member a few days ago that I thought the time for reconsidering the relations of the Government and the Bank of Ireland would come when the period for which those relations were fixed expired. I believe that will be in 1912. The relations between the two have been fixed by statute, the arrangement being made in view of all the circumstances of the case.

MR. JOHN REDMOND

But will you consider the desirability of appointing a Committee?

MR. AUSTEN CHAMBERLAIN

The hon. Member is asking me to appoint a Committee to re-open a matter settled after full consideration, a matter to which there are two parties—

MR. JOHN REDMOND

And a third, the taxpayer.

MR. AUSTEN CHAMBERLAIN

I cannot undertake to re-open the matter.