HC Deb 11 June 1918 vol 106 c2033
31. Mr. CURRIE

asked the Comptroller of the Household, as representing the National Health Insurance Commissioners, whether, in view of his reply to the hon. Member for the College Division of Glasgow on the 14th March, 1917, to the effect that the Joint Committee for National Health Insurance was considering a scheme whereby approved societies would receive the benefit of the higher rates of interest now yielded on invested funds, he can say whether anything has been or will be done; whether the Commissioners are still investing about three-sevenths of the societies' funds available for investment; whether they are investing them in National War Bonds or other War Stock; and what method is being employed to credit approved societies with the difference between the prescribed rate of 3¼ per cent. and the 5 per cent. interest yielded on National War Securities?

Sir E. CORNWALL (Comptroller of the Household)

In reply to the first part of the question, I have been in communication with the Treasury on the subject, and I am glad to be able to inform my hon. Friend that the prescribed rate of interest will be increased from 3¼ to 4 per cent. as from 1st January of the present year. This increased rate of interest will apply to all moneys in the investment account, including those invested before the general rise in the rate of interest.

With regard to the second and third parts, moneys standing to the credit of approved societies in the investment account are still invested, as required by the provisions of the National Insurance Act, 1911, through the National Debt Commissioners, and they are being invested by those Commissioners in national securities issued for the purpose of the present war.

With regard to the last part of the question, as I have already stated, the prescribed rate will be increased to 4 per cent., as from 1st January last. Any balance of interest earned and not distributed will be applied to make good the depreciation to which, in common with all investments, the securities held on this account have been subject.