§ 54. Mr. H. WILLIAMSasked the Chancellor of the Exchequer the estimated amount of interest expected to be credited during the present financial year to the holders of national savings certificates; and the amount of interest expected to be paid during the financial year on encashment of certificates?
§ Mr. CHURCHILLThe amount provided under the head of Debt Interest in the Budget for the estimated payments in respect of interest on savings certificates is £9,000,000. The total interest accruing during the year on the whole corpus of certificates would be somewhat under £24,000,000, but it is obviously improbable that so large a number of certificates would be presented for encashment as to entail a payment on this scale.
§ Mr. H. WILLIAMSAm I to assume that the Sinking Fund will be £15,000,000 less than that estimated in the financial statement?
§ Mr. CHURCHILLThat would not be a right deduction. In point of fact, the figure of £10,000,000 might well be ascribed to the growth of debt and as a set-off against our methods for amortisation of debt. That was dealt with by the Colwyn Committee, when they fully considered the debt, and they recommended the continuation of the present system.