§ 41. Major HORE-BELISHAasked the Chancellor of the Exchequer what is the extent of the outstanding advances of the Treasury to the Unemployment Fund; what is the period in which these advances have been made; and what is the rate of interest charged?
§ Mr. CHURCHILLThe advances outstanding on the 1st July were £8,100,000. The first advance was made on the 8th July, 1921. The rate of interest charged on the advances at present outstanding averages 4.9 per cent. It is not, of course, the case that the total rose steadily from nil five years ago to £8,100,000 to-day. The total has fluctuated widely, the maximum being £17,060,000 on 9th March, 1923.
§ Major HORE-BELISHAFor what period are these advances made? Are they week by week or month by month?
§ Mr. CHURCHILLThe Ministry of Labour have what is virtually a running account with the Treasury. They borrow automatically what they require within the statutory limits, and they are charged interest, and as the fund grows they reduce their overdraft.
§ Colonel DAYWhat rate of interest are they charged?
§ Mr. CHURCHILLThe average rate is 49 per cent.