51. Mr. HALLCAINEasked the Chancellor of the Exchequer if he can supply figures showing the amount of assets of the Post Office Savings Bank on loan to the Unemployment Insurance Fund on each quarter-day during the past five years?
Mr. CHAMBERLAINAs the answer contains a number of figures I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.
§ Following is the answer:
§ The amounts of the assets of "The Post Office Savings Banks Fund" advanced to the Exchequer under the Unemployment Insurance Acts and outstanding on each quarter-day during the past five years were as follow:
| £ | ||
| 31st December, 1926 | … | 14,332,431 |
| 31st March, 1927 | … | 15,572,431 |
| 30th June, 1927 | … | 15,342,431 |
| 30th September, 1927 | … | 15,052,431 |
| 31st December, 1927 | … | 15,744,431 |
| 31st March, 192S | … | 16,850,431 |
| 30th June, 1928 | … | 17,904,431 |
| 30th September, 1923 | … | 19,174,431 |
| 31st December, 1928 | … | 23,424,431 |
| 31st March, 1929 | … | 27,234,431 |
| 30th June, 1929 | … | 27,763,000 |
| 30th September, 1929 | … | 27,828,000 |
| 31st December, 1929 | … | 29,188,000 |
| 31st March, 193) | … | 29,968,000 |
| 30th June, 1930 | … | 32,818,000 |
| 30th September. 1930 | … | 37,988,000 |
| 31st December, 1930 | … | 43,268,000 |
| 31st March, 1931 | … | 53,098,000 |
| 30th June, 1931 | … | 60,428,000 |
| 30th September, 1931 | … | 72,008,000 |
54. Mr. MACLEANasked the Chancellor of the Exchequer whether the borrowing from the Post Office Savings Bank deposits required Cabinet approval, or whether it was operated without Cabinet sanction as a part of Treasury adminis- 669 tration; whether, if Cabinet sanction had to be obtained, such approval had to be obtained each year or whether, once obtained, the policy was continued without further application for sanction; and when Cabinet sanction was first asked for and obtained?
Mr. CHAMBERLAINWithin the limits laid down by Statute the investment of the monies deposited in the Post Office Savings Bank is at the discretion of the National Debt Commissioners and Cabinet approval is not required. The rest of the question, therefore, does not arise.
55. Mr. MACLEANasked the Chancellor of the Exchequer when the Treasury first adopted the policy of borrowing from Post Office Savings Bank deposits; the amounts borrowed in 1925 and each succeeding year to and including 1931; and whether such borrowings are and have been shown in published Government accounts?
Mr. CHAMBERLAINAs the answer contains a number of figures, I will, with the hon. Member's permission, circulate it. in the OFFICIAL REPORT.
Mr. MACLEANSince Cabinet approval is not required for carrying out this policy, can the right hon. Gentleman inform the House why the country was led to believe that the late Cabinet had that under consideration and carried out that policy?
§ Following is the answer:
§ The practice of raising from the Post Office Savings Bank Fund sums which the Treasury is authorised by Act to borrow dates back at least to 1888. These borrowings are usually repayable by short period annuities or at the end of a short term of years. Thus at the same time as new loans are being raised earlier loans are being repaid. The following table shows the actual amount borrowed in 1925 and succeeding years and the net advances after allowing for repayment of earlier loans. It includes a few items which are not borrowed by the Treasury but are advanced under special Acts, such as the Pensions Commutation Act, 1869.
670| Year. | Amount borrowed. | Capital Repayments. | Net increase in advances. |
| £ | £ | £ | |
| 1925 | 13,902,000 | 5,998,000 | 7,904,000 |
| 1926 | 23,240,000 | 4,626,000 | 18,614,000 |
| 1927 | 13,636,000 | 6,176,000 | 7,460,000 |
| 1928 | 19,031,000 | 5,378,000 | 13,653,000 |
| 1929 | 17,814,000 | 6,297,000 | 11,517,000 |
| 1930 | 27,904,000 | 7,476,000 | 20,428,000 |
| 1931 (to 10th Nov.) | 36,219,000 | 4,093,000 | 32,126,000 |
§ The amounts outstanding at the end of each calendar year are shown in the annual Post Office Savings Banks Account which is presented to Parliament under Statute.
§ 68. Mr. RHYS DAVIESasked the Financial Secretary to the Treasury the total sum standing to the credit of investors in the Post Office Savings Bank at the last convenient date; what use is ordinarily made of that sum by way of investing it for the purpose of earning interest; the amount so received in interest during the last financial year; the amount paid in interest to depositors; the cost of administration; and the amount of the nett gain, if any?
§ Major ELLIOTThe amount standing to the credit of depositors in the Post Office Savings Bank on the 31st October was £292,000,000, including accrued interest. The funds remitted to the National Debt Commissioners are invested by them in securities issued under Statute for the interest on which provision is made by Parliament or in securities guaranteed by the British Government. As regards the remaining parts of the question, the hon. Member will find details for the year to 31st December, 1930, in the paper "Savings Banks and Friendly Societies" (63.9999 of 1931).
§ Mr. DAVIESCan the hon. and gallant Gentleman tell us whether the Cabinet at any time decide the destination of any of these investments?
§ Major ELLIOTThat has been answered in reply to previous questions.
§ Mr. DAVIESWill the hon. and gallant Gentleman answer it again?