§ 52 Mr. Asshetonasked the Chancellor of the Exchequer (1) since when it has become the practice to invest the Unemployment Fund in stocks without a definite date of redemption in view of the possibility of serious loss resulting from such an investment;
990 (2) how much money the Unemployment Fund has lost by investing in 2½ per cent. Treasury Stock; and how he propose to deal with this loss in the books of the Fund;
(3) on what grounds the investment of part of the Unemployment Fund in £24,668,613 Treasury 2½ per cent. Stock was authorised.
§ Sir S. CrippsUnder the National Insurance Act, 1946, the bulk of the assets of the Unemployment Fund Investment Account will, together with other assets, be transferred on the appointed day to the National Insurance (Reserve) Fund. Adequate liquid investments are already available for the purpose of the National Insurance Funds, and in the interest of insured persons the Reserve Fund will be invested to secure the maximum yield. With this object, various long-term stocks, including 2½ per cent. Treasury Stock 1975 or after, have been purchased since the passing of the Act and in anticipation of the appointed day. There is nothing unsuitable in the choice of an irredeemable stock for a reasonable proportion of the holdings of the Reserve Fund. There will be no loss to account for unless and until this stock is sold.
§ Mr. AsshetonWill the right hon. Gentleman be good enough to tell us how much depreciation this particular investment is at current prices?
§ Sir S. CrippsI cannot say. It is only a very small proportion of the total holding.
§ Mr. AsshetonWould it not run into some millions of pounds?
§ Sir S. CrippsNo, it certainly would not do that. It is only a small number of millions held altogether.
§ Mr. AsshetonAs the number of millions is 24 and the depreciation on two-and-a-half per cent. stock is something like 20 per cent., it might easily be four or five millions.