HC Deb 04 July 1950 vol 477 c247
55. Mr. Emrys Hughes

asked the Chancellor of the Exchequer why the interest on the first stock issued for the purpose of paying compensation under the Coal Industry Nationalisation Act was fixed at 31 per cent.

Sir S. Cripps

Because under Section 21 (3) of the Coal Industry Nationalisation Act, 1946, stock must be equal in value to the compensation at the date of issue.

Mr. Hughes

Is the Chancellor aware that we are paying £13 million in interest and sinking fund to the coalowners this year, which is a heavy burden on the industry and on the consumer? Is there no prospect of it being reduced?

Sir S. Cripps

This was laid down by Parliament in the Act I mentioned, and I have to administer it.

Mr. Osborne

Is it not a fact that this stock has to pay 3½ per cent. interest as against the 2½ per cent. issued by the Treasury, which shows that Government credit has gone down by 1 per cent.?

81. Mr. Emrys Hughes

asked the Minister of Fuel and Power how much of the £20,000,000 of 3½ per cent. Treasury Stock, recently issued as a first instalment of the compensation to be paid under the Coal Industry Nationalisation Act, has been paid to coalowners in Scotland.

The Parliamentary Secretary to the Ministry of Fuel and Power (Mr. Robens)

The amount of Treasury Stock issued as a first instalment of compensation to be paid under the Coal Industry Nationalisation Act to coalowners in Scotland was £220,500.

Mr. Hughes

Is this small proportion due to the fact that some of these Scottish owners have declined their compensation?