HC Deb 13 November 1958 vol 595 cc552-4
27 and 29. Mr. John Hall

asked the Chancellor of the Exchequer (1) if, in addition to existing arrangements for the repayment of post-war credits, he will repay a further fixed sum each year by way of drawings through the medium of the electronic random numeral indicating equipment;

(2) if he will reduce the age at which post-war credits will be repaid.

37. Mr. Hirst

asked the Chancellor of the Exchequer whether, in the light of current economic conditions, he will now consider earlier repayment of post-war credits.

The Financial Secretary to the Treasury (Mr. J. E. S. Simon)

I would refer the hon. Members to the reply given to the hon. Members for Sunderland, North (Mr. Willey) and for Feltham (Mr. Hunter) on 11th November.

Mr. Hall

Is my hon. and learned Friend aware that I made the suggestion contained in my first Question in the most helpful spirit? I am sure that the Chancellor of the Exchequer must have great difficulty, if he is considering facilitating the rate of repayment, in deciding between the conflicting views of many people who think they have a special claim or privilege in this question. Would not the use of E.R.N.I.E. as an impartial arbitrator greatly assist him in the solution of this problem? If I may deal with the second of my Questions which my hon. and learned Friend has answered, is it not a fact that for many people very soon the post-war credits will become posthumous credits?

Mr. Simon

I recognise readily the helpful spirit in which my hon. Friend asked this Question. Nevertheless, I think that if money were available for further release it would probably be best to distribute it by way of a reduction in the qualifying age for repayment rather than by random selection. With regard to the second part of my hon. Friend's supplementary question, I would refer him to the answer which was given by my right hon. Friend on Tuesday.

Mr. Hirst

Is my hon. and learned Friend aware that I am well aware of all these stonewalling answers, and of many we had had before? Is he further aware that, however valid they were in the context and time in which they were made, they surely cannot continue to exist in the present state of the economy, which has at least undergone some measure of change?

Mr. Simon

I think my hon. Friend underestimates my power of stonewalling.

Mr. Hirst

Not even before that one.

Mrs. Braddock

In view of the public concern arising out of this matter, would not the hon. and learned Gentleman look at the situation and at any rate release post-war credits to the next of kin upon the death of a person who owns them? That ought to be administratively possible quite easily. It would certainly go a long way towards easing some of the great criticism which there is of the lack of action in this matter.

Mr. Simon

Yes, my right hon. Friend does keep this matter continually under review.

Mr. H. Wilson

While I would be the last person to underestimate the hon. and learned Gentleman's power of stonewalling, may I ask if it is not a fact that we have now been told officially by no less a person than the Lord Mayor of London that St. George at 10, Downing Street, has slain inflation, and in these circumstances, as the argument against repayment of post-war credits needs rather urgent reconsideration, without waiting for an election Budget, will the Government consider paying off post-war credits in cases of acute hardship among widows. pensioners, and others on National Assistance?

Mr. Simon

I am not responsible for the pronouncements of the Lord Mayor of London. With regard to the second part of the right hon. Gentleman's question, I would refer him to the answer I gave last week on the question of repaying on the basis of hardship.

Mr. Hirst

More stonewalling.

28. Mr. John Hall

asked the Chancellor of the Exchequer what further consideration has been given to the possibility of accepting post-war credits in payment of Estate Duty.

Mr. Simon

My right hon. Friend has given further consideration to this possibility, but he regrets that he is still not able to adopt it.

Mr. Hall

Is my hon. and learned Friend aware that a large number of Government creditors have been waiting at least thirteen years for repayment of their forced loans? Would he not therefore offer the same interest-free credit terms to those who are liable to pay this destructive tax on capital, and if he will not do so, will he explain the justification for the differential treatment?

Mr. Simon

I do not think that the question of Estate Duty is in any way comparable with that of post-war credits. At to the first part of my hon. Friend's supplementary question, I would respectfully refer him to what was said by my right hon. Friend on Tuesday.

Mr. Glenvil Hall

Will the Financial Secretary tell us how much is now outstanding under this heading and what would be the effect if the Chancellor saw his way to reduce the ages of men and women by five years in each case?

Mr. Simon

The total now outstanding is approximately £440 million, and the cost of a five-year reduction in the qualifying age would be approximately £85 million in the year of change.