HC Deb 13 July 1953 vol 517 cc1698-9
22. Mr. Elwyn Jones

asked the Attorney-General whether he is aware that widows and infants and others, for whose benefit sums of money awarded by way of damages, etc., are paid into the county court, receive less interest on those sums than is paid when such sums are paid into the High Court; and whether he will cause the necessary steps to be taken to end this differentiation.

The Attorney-General (Sir Lionel Heald)

I am aware that there is a difference between the practice of the High Court and that of the county court in the investment of funds paid into court. There are good grounds for this, but I understand that my noble Friend the Lord Chancellor, with the concurrence of the Treasury, proposes to reintroduce in the county court an investment account in which suitors' money, if placed there by order of the court, will bear interest at 3 per cent.

Mr. Elwyn Jones

While thanking the Attorney-General for that most helpful answer, may I ask first whether this ruling will be made to apply to payments into court which have been paid in already, that is to say, will be made retrospective in effect? Secondly, may I ask him how the new rate of interest of 3 per cent. compares with the return on investments in Government securities of moneys paid into the High Court?

The Attorney-General

With regard to the first point, I will certainly see that it is taken up, though I would not like to encourage the hon. and learned Gentleman to expect very much result. As regards the second, I understand that in the High Court the current average rate of return is somewhere between 3 and 4 per cent., probably nearer 3 than 4.

Mr. Elwyn Jones

May I again ask the Attorney-General why there should be this differentiation? The county court is the poor man's court and there has to be this limitation there of 3 per cent., whereas money paid into the High Court has apparently to yield a higher interest. I do not want to embarrass the Attorney-General by asking him to explain technicalities at this stage, but will he look into this again and end this differentiation which causes hardship to poor litigants?

The Attorney-General

I will certainly see that the matter is looked into.