§ Mr. LEVERTON HARRISasked the Secretary to the Treasury if any portion, and, if so, how much, of the Old Sinking Fund for the year 1907–8 has been issued to the Commissioners for the reduction of the National Debt since the close of the last financial year?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Charles Hobhouse)The whole of the Old Sinking Fund of 1907–8 was, in accordance with the provisions of section 5 of the National Debt (Sinking Fund) Act, 1875, issued to the National Debt Commissioners before the 1st April last.
§ Mr. LEVERTON HARRISalso asked whether any part of the Old Sinking Fund, 1907–8, has been applied to the repayment of money temporarily borrowed for the purpose of paying interest on Consols or other Government securities; and, if so, under what authority the old Sinking Fund can be used for purposes other than the redemption or repayment of funded debt?
§ Mr. HOBHOUSEThe sum of £1,500,000 out of the Old Sinking Fund of 1907–8 has, under section 5 of the National Debt (Sinking Fund) Act, 1875, been applied by the National Debt Commissioners in paying off advances made by the Bank of England in pursuance of section 12 of the Exchequer and Audit Act, 1866. The hon. Member will see, if he consults the latter Act, that the character and purposes of these advances is by no means accurately reflected in the description "money temporarily borrowed for the purpose of paying interest on Consols or other Government securities."
§ Mr. LEVERTON HARRISAm I to understand that the £1,500,000 is not applied to the redemption of the Funded Debt?
§ Mr. HOBHOUSENo, Sir. The Old Sinking Fund is applicable either to the reduction of Exchequer Bonds or Exchequer Bills, or specifically, under the Act of 1875, which I have quoted, to the repayment of advances made from the Bank of England or Ireland.
§ Mr. LEVERTON HARRISThen this payment does not go to the reduction of the National Funded Debt of the country?
§ Mr. HOBHOUSEThe hon. Member will get an answer to that in my reply to the next question.
§ Mr. LEVERTON HARRISasked on how many occasions during the last ten years has the Old Sinking Fund been applied to the payment of loans contracted for current expenses instead of to the repayment of the Funded Debt; and the date of those occasions?
§ Mr. HOBHOUSEOn no occasion during the last 10 years has the Old Sinking Fund been applied in its entirety to the redemption of Funded Debt. I am not certain what is meant by "loans contracted for current expenses," but I may state that the Old Sinking Fund of the years 1898–9, 1899–1900, and 1905–6 was applied either partially or wholly to the repayment of advances made by the Bank of England under section 12 of the Exchequer and Audit Act, 1866.