§ 76. Mr. WARDLAW-MILNEasked the Financial Secretary to the Treasury whether he is now in a position to state what action he intends to take to protect United Kingdom trustees and others against alterations of the terms upon which loans were subscribed, in view of the proposal for a reduction to be made in the Sinking Fund of the Australian national debt, which will entail an alteration in the prospectus terms upon which certain Australian loans were raised here?
§ Mr. PETHICK-LAWRENCEI have made inquiries into the matter and find that the position is as follows:
365 The original basis of the Australian Sinking Funds is that ordinary debts (including War debts) shall be redeemed in 60 years and postal debts in 30 years, and to this end a Sinking Fund charge of 10s. per cent. (30s. per cent. in the case of postal debts) is set aside annually out of the consolidated Revenue Fund. Additional sums have been provided for debt redemption, including one half the profits of the Commonwealth Bank and Reparation receipts, but these extraneous receipts were not essential to the general plan of the Sinking Funds. In the present difficult circumstances of the Commonwealth's finances it is proposed to revert to the original basis. As the original principle of the Sinking Fund thus remains intact and provision continues to be made for the redemption of the debts within the periods stated, my right hon. Friend does not consider that any action on his part is necessary.
§ Mr. WARDLAW-MILNEDo I understand from the reply that there is in fact no change in the terms laid down in the original prospectus by the alterations to which the Financial Secretary has referred in his reply. If it be the case that there is a change, is it not essential that protection should be given to those who subscribe on the terms of the original prospectus?
§ Mr. PETHICK-LAWRENCEThere is no change in the terms which were the original basis of the Australian Sinking Fund.