HC Deb 08 May 1951 vol 487 cc1756-7
53. Sir W. Smithers

asked the Chancellor of the Exchequer why interest is not being paid on outstanding Post-war Credits.

Mr. Gaitskell

There is no right to interest on outstanding Post-war Credits, and it was never intended that interest should be paid or accrue prior to repayment of the credit itself.

Sir W. Smithers

Is the Chancellor aware that the "Income Tax Quiz" published by His Majesty's Stationery Office says, on page 21: Does the Post-war Credit bear interest? Answer: It will bear interest as from some date after the end of the war. Can the Chancellor say when that date will be fixed, for the benefit of the people who put their money in to help during the war?

Mr. Gaitskell

When the financial circumstances of the country permit.

Lieut.-Commander Guraey Braithwaite

Is the Chancellor aware that under the existing system the last Post-war Credit will not be repaid until 1988, by which time the Government will have had the interest-free use of this money for 47 years?

56. Brigadier Medlicott

asked the Chancellor of the Exchequer what is now the approximate total of outstanding Post-war Credits; and if he can give any estimate of the year in which payments of these credits on a substantial scale can be commenced.

Mr. Gaitskell

About £611 million. As I said in the Budget debate on 16th April, we cannot afford to speed up the rate of repayment this year, and I cannot say now when it will be possible to do this.

Brigadier Medlicott

Can we appeal for a greater measure of consistency in the Treasury? Does the Chancellor of the Exchequer not recall that he recently justified the rather remarkable Financial Agreement with the Egyptian Government on the ground of the moral obligation involved? Surely the people who own these Post-war Credits are equally entitled to consideration.

Mr. Gaitskell

I do not agree that the analogy is at all an appropriate one.

Lieut.-Colonel Lipton

How does the amount outstanding compare with the amount already paid out?

Mr. Gaitskell

I should like to have notice of that question.

Sir W. Smithers

Will the Chancellor take into consideration the cases of old people or people who are ill or in want, and give them special consideration by the repayment of their Post-war Credits?

Mr. Gaitskell

It is already done in the case of people reaching the age of 65 in the case of men, and of 60 in the case of women.