HC Deb 17 February 1927 vol 202 cc1105-6
58. Mr. DALTON

asked the Chancellor of the Exchequer the amount by which the principal of the National Debt will be increased on account of the cash applications, as distinct from the conversion applications, of the recent issue of 4 per cent. Consols; and whether, in his estimate of the saving in the annual interest charge, any allowance was made for the prospective loss to the Treasury of Income Tax and Super-tax owing to the reduced income of the holders of public securities as a result of conversion?


As I have already informed the hon. Member on the 8th February, the cash applications amounted to £81,300,525 stock and the cash proceeds will be £69,105,446. The answer to the second part is in the negative; but the explanation would be complicated and the amount if any—and this is arguable—would be small.


Does it not follow that the result of this conversion transaction is that the only saving to the taxpayer is less than £500,000 a year, and the National Debt has been increased by £32,000,000?


I am always ready to debate such matters, but it is a complicated question to discuss—the relative values of time and money in regard to these long-dated obligations. I should be quite ready to discuss it at a suitable time, which is not Question Time.