HC Deb 25 July 1950 vol 478 cc227-9
24. Sir John Mellor

asked the Minister of National Insurance what was the cost to the absorbed funds of the 2½ per cent. Treasury Stock held by the National Insurance (Reserve) Fund at 31st March, 1949, and shown in the accounts of that Fund as costing £153,924,166 6s. 10d.

Dr. Summerskill

The original cost of the 2½ per cent. Treasury Stock transferred from the absorbed funds on 5th July, 1948, was £159,112,934. I should point out that the figure quoted by the hon. Member includes a certain amount of stock purchased subsequently.

Sir J. Mellor

Why is the correct figure not shown in the accounts?

Dr. Summerskill

I am afraid the hon. Baronet does not read the documents very carefully. If he will look at paragraph 14 on page VIII he will see that the figures of cost prices shown in statement VII represented, in most cases, the price at which investments were taken over.

Sir J. Mellor

Why not give the actual figure of the cost instead of a figure for something quite different?

Dr. Summerskill

I cannot agree with the hon. Member.

25. Sir J. Mellor

asked the Minister of National Insurance why, while footnote (b), on page 25 of the House of Commons Paper 61, interprets cost price as market value at 5th July, 1948, no similar footnote appears with regard to the expression cost price on page 12; and whether a warning will be inserted in future Statements of Securities of the National Insurance (Reserve) Fund that the expression cost price bears no relation to cost.

Dr. Summerskill

As some of the investments shown on page 12 of the paper were purchased during the period of account, a footnote in the terms suggested by the hon. Baronet would not have been appropriate. As regards the second part of the Question, I have nothing to add to what my right hon. Friend the Chancellor of the Exchequer said on 4th July regarding the form of the accounts.

Sir J. Mellor

Will the right hon. Lady at least give a warning that the figure given for the cost price is not the correct figure of the cost?

Dr. Summerskill

Certainly. The warning has been given on page viii, as I have frequently pointed out. If the hon. Baronet is still confused—because he has put Questions down on four occasions on this subject—and if he cares to come to my Department I will guide him through the accounts.

Sir J. Mellor

Will the hon. Lady put the right figure in?