§ Considered in Committee under Standing Order No. 71A.
§ [Mr. DUNNICO in the Chair.]
§
Motion made, and Question proposed,
That, for the purposes of any Act of the present Session relating to finance, it is expedient to authorise the Treasury to prolong the currency of savings certificates."—[King's Recommendation signified.]—[Mr. W. Graham.]
§ Mr. W. GRAHAMMembers in all parts of the Committee are familiar with the system of Savings Certificates which was instituted in 1916, and the point which is raised by this Financial Resolution is comparatively simple. The object is to give the Treasury power to extend the dates at which these Savings Certificates must be repaid. There are three series of these certificates. The first series was introduced or issued in 1916 for the period from that year to 1922. That period was extended, and under the Finance Act of 1926 it was again extended and it became due to expire on the 31st March, 1932. The amount of principal and accrued interest on the first series', which fell due to be repaid on 31st March, 1932, would be approximately £150,000,000. Of course, it would be inconvenient, if not impracticable, to repay such sums to large numbers of people who, quite apart from that, would wish to continue these certificates as they have done in the past. A second series of 1852 certificates was issued in 1922–23, and, as the existing provision runs, they are due to expire on the 30th September, 1933. On that date the amount of principal and accrued interest outstanding would be £57,000,000. Then there is the third series, that is the present series, so to speak, and the amount of principal and interest outstanding, if I remember aright, at the end of last year was probably about £255,000,000.
The object of this Resolution is simply to give the Government, through the Treasury, power to extend the dates of repayment. As regards the first series, which is perhaps the series with which we are concerned, the suggestion is that it should be extended to 1940 because by that time these certificates will have had a life of 24 years, and quite plainly it will be desirable at that date that they should be converted or repaid. The Financial Resolution is sufficiently elastic to enable the Government, through the Treasury, to deal with the later series, and to extend the dates as may be thought desirable from time to time. I think that I need not say more regarding this Motion, because this incentive to thrift is one that has fortunately commended itself to all sections of the community, and it is desirable that this elasticity for the Treasury should be obtained in this way.
§ Resolution to be reported To-morrow.