HC Deb 23 September 1948 vol 456 cc1085-6
55. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer for what reason blocked sterling accounts may only be invested in British Government's stocks where redemption date is more than 10 years.

The Financial Secretary to the Treasury (Mr. Glenvil Hall)

A minimum redemption date 10 years hence is designed to prevent advantage being taken, by purchase of investments maturing in the near future, of the present administrative practice of permitting non-residents to transfer the proceeds of securities which have been repaid in accordance with their terms of issue.

Colonel Crosthwaite-Eyre

As the British Government's statement meant all these accounts are held blocked on Bank of England account at a per cent., why is it now considered necessary to allow them to earn 3 per cent. by investing them in long-dated securities?

Mr. Glenvil Hall

This has been the practice all through. It is easy to take isolated instances to point to anomalies, but, actually, it works very well, and at the moment we have no intention of changing it.

Colonel Crosthwaite-Eyre: Will

the right hon. Gentleman say why he allows these accounts to earn 3 per cent? Surely that is not in the national interest?