HC Deb 23 June 1955 vol 542 c1487
30. Sir F. Medlicott

asked the Chancellor of the Exchequer if he will make provision for interest to be paid on postwar credits.

Mr. H. Brooke

My right hon. Friend regrets that he cannot accept this suggestion.

Sir F. Medlicott

Is the Minister aware that one of the objects behind the suggestion is to make it so much more costly for the Treasury to hold on to the postwar credits as to provide his right hon. Friend with an incentive to pay them off in their entirety?

Mr. Brooke

My hon. Friend may be interested to know that were interest paid at the rate of 2½ per cent., which is the rate running for Post Office Savings Bank deposits, the cost would be about £13½ million a year. I am inclined to think that, were £13½ million available, it would be better used to speed up the rate of repayment.

Lieut.-Colonel Lipton

But the Government are doing neither.

Lieut.-Colonel Bromley-Davenport

Since my right hon. Friend is not prepared to pay interest which his Department owes to the taxpayers, would he be prepared to cancel the interest which the taxpayers have to pay on the money which they owe his Department?

Mr. Brooke

I am glad to hear the voice of my hon. and gallant Friend again, but not his supplementary question, which is a long way removed from the Question on the Order Paper.