§ Sir FREDERICK BANBURYasked how much of the £9,000,000 reduction in the National Debt this year is due to the falling in of Terminable Annuities, or of automatic reductions in loans for naval, military, or other public works?
§ Mr. LLOYD GEORGEA sum equal to the portion of each terminable annuity applicable to the repayment of capital in the year is written off the gross aggregate liabilities year by year. The falling in of an annuity in ordinary course has therefore no exceptional effect upon the amount of the reduction credited to the year in which it occurs. The gross reduction due to the operation of terminable annuities included in the fixed debt charge for 1910–11 is estimated at £2,537,000, and the gross reduction due to the operation of terminable annuities borne on Votes in respect of "other capital liabilities" at £2,497,000. I may remind the hon. Baronet that what he calls "automatic reductions" have to be met by moneys provided out of the revenue of the year.
§ Sir F. BANBURYAm I to understand that the figures which the right hon. Gentleman has given us, amounting in all to some £5,000,000, apply to the year 1910–11? My question applied to the year 1909–10.
§ Mr. LLOYD GEORGENo. The hon. Baronet is quite wrong; the question refers to this year.
§ Sir F. BANBURYIf that is so, am I correct in saying that £5,000,000 is due to the falling in of terminable annuities and the automatic reduction of debt?
§ Mr. LLOYD GEORGEYes; out of the £9,000,000 which I have to find out of revenues to reduce debt £5,000,000 will go to meeting these terminable annuities.