HC Deb 04 July 1907 vol 177 cc851-3
MR. MYER (Lambeth, N.)

To ask Mr. Chancellor of the Exchequer whether he will give particulars of all cases of terminable annuities created since 1861, the terms of years of which annuities, as originally fixed, have been subsequently extended; and will he state what amounts have from time to time been applied to the reduction of the deficiency in the trustees savings banks and friendly societies, how the fact of the deficiency was established, and what is its present amount.

(Answered by Mr. Asquith.) Particulars of Annuities created since 1861, of which the terms of years as originally fixed have been subsequently extended. 1. The following annuities which were to have expired in 1885 were, under Section 5 of The National Debt Act, 1883, converted into a twenty years annuity of £684,022:—

Annuities exchanged.
£. s. d.
1. Annuities created for fortifications under 23 and 24 Vic., c. 109, and subsequent Acts 588,003 11 6
2. Annuities created for localisation of the military forces under 35 and 36 Vic., c. 68 378,831 0 0
3. Annuities created, in lieu of stock held on account of savings banks, under 29 Vic., c. 5, and 32 and 33 Vic., c. 59 3,617,845 0 0
4. Portion of annuities created under National Debt Act, 1880, 43 Vic., c. 15 550,583 0 0
5,135,262 11 6

2. Annuities amounting to £3,600,000 created under Section 2 of The National Debt Act, 1883, and running for periods of five, ten, and fifteen years were, under Section 4 of The National Debt and Local Loans Act, 1887, exchanged for equivalent new annuities running for a period not exceeding fifteen years from 12th July, 1887. Under Section 17 of the Finance Act, 1899, those annuities were again exchanged for annuities of equivalent capital value terminating in the year ending 31st March, 1912. The dates of expiry of the above annuities have been retarded owing to the suspension of the issues of sinking fund in the years 1885–6, 1900–1, and 1901–2. 3. The annuity of £83,672 12s., created under Section 1 of the Savings Banks Act, 1880, for the purpose of making good the capital deficiency on the Trustee Savings Banks Account, computed at £3,573,405, was, by Section 10 of the Savings Bank Act, 1904, extended from 1908 to 1917. The annuity as originally set up was calculated to accumulate to the capital deficiency at 20th November, 1880, by 1008. The accumulated fund at 20th November, 1903, amounted to £2,468,301, and the payments from that date will suffice to make good the balance of £1,105,104, while setting free the interest on the securities acquired for the annuity and thus increasing the income account of the Savings Banks Fund. Besides the annuities mentioned above, the suspension during the war of the capital portions of the new terminable annuities created by the Finance Act, 1899, rendered necessary the prolongation of the period of these annuities to the extent of the time of their suspension; but this arrangement of course involved no alteration in the amounts of the annuities. The capital deficiency on the Trustee Savings Banks Fund was calculated under Section 1 of the Savings Banks Act, 1880, which practically provided for the assets being valued on a 3¼per cent. basis. The sum accumulated by the Savings Banks Deficiency Annuity set up to make good this deficiency amounted on 20th November,

1903 to £2,468,301
and since that date the instalments of the annuity have provided 251,018
Total amount applied to the reduction of the capital deficiency on the Trustee Savings Bank Fund £2,719,319

The amounts applied to the reduction of the capital deficiency on the fund for friendly societies have been:—

1886–7 Issued from the Con £
solidated Fund 20,000
1887–8 Issued from the Consolidated Fund 10,000
Old Sinking Fund of 1886–7 776,006
1888–9 Part of Old Sinking Fund of 1887–8 463,820
Total amount applied 1,269,826

The sum issued from the Old Sinking Fund in 1889 was the amount required to make good the capital deficiency at the 20th November, 1888, on the basis of a market price valuation of the securities.