§ 11. Mr. H. G. WILLIAMSasked the Minister of Labour the present amount of the funded debt of the Unemployment Insurance Fund, the present amount outstanding to the credit of the fund, together with the respective average rates of interest paid and received respectively?
§ Mr. E. BROWNAt the present time the amount outstanding of the debt of the Unemployment Fund is about £104,740,000, on which the current rate of interest averages about 3⅓ per cent. As from October, 1938, the rate will be 3⅓ per cent. At the 7th November, 1936, the balance of the fund was about £36,800,000; this balance is invested in short term securities on which the rate of interest averages about 1⅓ per cent.
§ Mr. WILLIAMSHaving regard to these figures, would it not be an advantage if some of the surplus were used to pay off the debt?
§ Mr. BROWNThe Committee reported on that and were not of that opinion. The Committee will make another review at the end of the year, when the situation will be again reported on.
§ Mr. BELLENGERIs it not possible to get better rates of interest on this 1018 surplus, bearing in mind the amount that is paid on the debt?
§ Mr. BROWNNo, Sir. The hon. Member must understand that the debt was incurred over varying periods of years, and that in the early period the rates of interest were higher than in the later part.
§ Mr. THURTLECannot the right hon. Gentleman put some of the surplus into longer-term securities and get better interest?
§ Mr. BROWNI am satisfied that the very best is being done with it. A comparison with past figures will show that it is going down.