§ 20. Mr. Stokesasked the Chancellor of the Exchequer whether the whole or any part of the £30,000 a year increase in salaries and pensions to the seven active Directors of the Bank of England will be provided by the issue department before calculation of its profits or by the banking department of that institution?
§ Sir K. WoodI would refer my hon. Friend to my reply to his Question of 20th August. The profits of the issue department are calculated after allowing for all necessary current expenses, including such proportion of the general overhead charges of the Bank as may reasonably be attributed to that department, and the amount allowed as an expense of the issue department in respect of Directors' remuneration is less than one-tenth of 1 per cent. of the total costs of that department.
§ Mr. StokesThe Chancellor has not answered my Question. Will he tell me whether this sum is to be voted from the issue department or the banking department, and will he say whether he himself really considers that this extra payment to Directors is justified, and, if so, on what grounds?
§ Sir K. WoodThat is not a matter for me. So far as the other part of the Question is concerned, I hope the hon. Member will study my reply. I think he will find I have answered the Question on the Paper. So far as my powers in connection with taxation are concerned, they will be fully exercised.
§ Mr. WoodburnIs a bank any more than any other firm entitled to issue great sums to its directors so as to escape Excess Profits Tax?
§ Sir K. WoodNo, Sir.