§ 53. Sir ROBERT HORNEasked the Chancellor of the Exchequer who is the creditor and who is the debtor in the obligations which constitute the existing debt on the Unemployment Insurance Fund; in what form the documents of debt are expressed; what is the average rate of interest at present payable on the debt as now existing; to whom is paid any portion of the debt which the debtor is able to repay; and what is done with the sums which the debtor repays?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)The money was advanced to the Unemployment Fund by the Treasury, who borrowed it for the purpose from the National Debt Commissioners out of moneys which the latter had available for investment on behalf of the funds for the Post Office and Trustee Savings Banks. The debt due by the Unemployment Fund to the Treasury is recorded in an exchange of official letters. The securities for the debt due by the Treasury to the National Debt Commissioners are in the form of five-year certificates signed on behalf of the Treasury, the principal of and interest on which are guaranteed by the Consolidated Fund. The interest on the advances is paid direct by the Unemployment Fund to the National Debt Commissioners. The average rate of interest on the debt now outstanding is for the time being 4⅝ per cent. Principal 32 sums repaid by the Unemployment Fund to the Treasury are paid into the Exchequer, and are thence issued to the National Debt Commissioners in repayment of the sums borrowed from them. Such repayments of principal are available for re-investment by those Commissioners in any of the securities in which they are authorised by law to invest on behalf of the Savings Banks Funds, including advances under the Telegraphs Acts or to the Local Loans Fund.
§ Mr. D. G. SOMERVILLECould not that rate of interest of 4⅝ per cent. be reduced, in view of the present price of money, which is about 3½ per cent.?
§ Mr. HORE-BELISHAMy hon. Friend will be aware of the proposals in the Bill, which are to be discussed to-morrow.