HC Deb 11 May 1948 vol 450 cc1959-61
53. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer what considerations are taken into account when investments of the moneys in the Unemployment Fund are made; and for what reason he is satisfied that it is correct to invest these funds in long dated securities.

54. Sir John Mellor

asked the Chancellor of the Exchequer why the National Debt Commissioners increased the Unemployment Fund's holding of 2½ per cent. Treasury Stock, which has no fixed date for redemption, from £25,000,000 on 31st March, 1947, to £80,000,000 on 31st March, 1948.

Sir S. Cripps

I would refer the hon. and gallant Member and the hon. Member to the reply which I gave on 17th February last to the right hon. Member for the City of London (Mr. Assheton).

Colonel Crosthwaite-Eyre

As the Government have admitted that had it not been for Marshall aid very severe unemployment would have occurred this year, surely it is necessary for them to keep this Fund in a liquid state? Can the Chancellor say why he has thought fit to increase by over 300 per cent. the amount of money in the non-liquid form which cannot be cashed, and the capital value of which is most uncertain?

Sir S. Cripps

Obviously, it is desirable that a large proportion of the Fund should be kept in a liquid state, as, in fact, it is kept in a liquid state.

Sir J. Mellor

Will the right hon. and learned Gentleman say why no short dated stocks were purchased during the last financial year, and why the stability of the Fund has been subordinated to Government policy?

Sir S. Cripps

The stability of the Fund has not been subordinated to Government policy. Investments have been made with a view to getting the best return for the people who will benefit by it.

Mr. Oliver Stanley

Does the right hon. and learned Gentleman describe long-dated securities without any termination date as a liquid investment?

Sir S. Cripps

No, I said that a great proportion of it was in a liquid state.

Mr. Stokes

Would not a good reason for investment in these undated stocks be, that this Labour Government would remain in office for a very long and indefinite period?

Sir J. Mellor

Will the right hon. and learned Gentleman say what has been the loss on the holding of "Dalton" undated stocks?

Sir S. Cripps

There has been no loss because they have not been sold.

Colonel Crosthwaite-Eyre

Will the right hon. Gentleman answer the specific point of why the Treasury have increased the holding in "Daltons" by 300 per cent.

Sir S. Cripps

The Treasury have not increased the holding. The increase is by persons responsible for the investment because they thought it was a wise investment to make.

56. Sir J. Mellor

asked the Chancellor of the Exchequer what regulations have been made by his Department concerning investments by the National Debt Commissioners for the purpose of Section 58 (3) of the Unemployment Insurance Act, 1935.

Sir S. Cripps

The operative instrument is the Unemployment Insurance (Investment) Regulations dated 30th November, 1921, made by the Treasury under the Unemployment Insurance Act, 1920, and maintained in operation by Section 114 of the 1935 Act. This instrument was published as S.R. & O. 1921, No. 1855, and reprinted in 1945. I am sending the hon. Member a copy.