§ 61. Mr. D. MASONasked the Chancellor of the Exchequer if he will state the total amount which has been set aside for the purpose of the depreciation fund in the 5 per Cent. 1947 War Loan; what amount has been used for this purpose; and what is the average rate of interest cost to the State of the money borrowed for the carrying out of the transaction?
§ Mr. BONAR LAWThe total amount set aside to date for the purposes of the depreciation fund established under Section 32 of the Finance Act, 1917, is £30,139,220. Of this sum £27,962,937 has been applied in the purchase for cancellation of £29,535,000 5 per Cent. War Stock, 1929–1947, and £10,000 4 per Cent. War Stock, 1929–1942. No borrowing has been effected specifically to raise the money issued to the fund, which has been provided from time to time out of the general Exchequer balance, which has been replenished by sales of War Savings Certificates, Exchequer Bonds, National War Bonds, and Treasury Bills. As regards the average rate of interest paid on such borrowing, I would prefer not to anticipate any observations I may have to make in my financial statement.
§ Mr. MASONAm I to understand from the right hon. Gentleman's reply that the general rate of 6 per cent. which we are paying in America for Treasury Bills and other forms of borrowing all go to this Vote?
§ Mr. BONAR LAWThe money is taken from our general fund. I presume that the hon. Member knows sufficiently well what the rate is.