§ 42. Lieut.-Colonel ACLAND-TROYTEasked the Chancellor of the Exchequer whether any part of the new Three per Cent. Loan will be used to pay off loans on which a lower rate of interest is now being paid?
§ Mr. HORE-BELISHAThe cost of the new loan is about £3 1s. 3d. per cent. The debt replaced consists of £105 millions of 4 per cent. Treasury bonds and £11 millions of 3 per cent. Treasury bonds, both due for repayment this month. The balance of the new money is available to reduce floating debt. It is not of course practicable to estimate what would have been the average cost of such floating debt over the period of 25 years to 35 years over which the life of the new loan extends.
§ Lieut.-Colonel ACLAND-TROYTEMay I take it that the statements in certain newspapers that this loan is going to cost the country nearly £3,000,000 more in interest is not true?
§ Mr. HORE-BELISHAYes, Sir. My hon. and gallant Friend may rest assured that the Government have acted with prudence, discretion, and wisdom.
§ Mr. MABANECan the hon. Gentleman say the amount of the balance available from the new money to reduce the Floating Debt?