Clause 8.—(WINDING UP OF UNCLAIMED BALANCES ACCOUNT.) (Hansard, 20 February 1964)

Mr. M. Macmillan
During the Second Reading of the Bill, the right hon. and learned Member for Newport (Sir F. Soskice) raised a number of points about the Unclaimed Balances Account arising from this Clause. He asked specifically about the sum remaining in the account, whether the amounts involved were large or small, and whether steps had been, or would be, taken to make known the existence of these claims.
I must first apologise to the Committee and to the right hon. and learned Member for Newport for unintentionally misleading them about the nature of these claims. I am afraid that we all assumed in the debate that they referred to war damage payments. In fact, they refer to war damage premiums.
The sum in the Account, about £6,000, as my hon. Friend the Financial Secretary said, consists of the residue of certain premiums paid by policy holders into some mutual insurance associations formed at the beginning of the war to insure against war risks to property. These associations were wound up under the War Damage Act in 1941 and the funds were distributed to the policy holders concerned in accordance with the provisions of that Act. At that time, some policy holders could not be traced. The Board of Trade did its best to trace them. Once it was satisfied that all reasonable steps had been taken to trace these people, it arranged for the unclaimed moneys to be paid into a special account at the Bank of England.
The figure of £6,000 is made up of premiums which ranged from about £5 to about £20. Only 12 claims, amounting to about £160, have been made on the fund since it was deposited at the Bank of England in 1942, and most of that total was repaid shortly after the war.
I must again apologise to the right hon. and learned Gentleman the Member for Newport for misleading him. There was a payment in 1955. My hon. Friend the Financial Secretary said that he would check his statement that the last payment was made in 1946. A small payment was, however, made in 1955.
Since 1942, no special efforts have been made to trace possible claimants, but the Board of Trade proposes, as soon as the Bill becomes law, to issue a Press notice calling attention to the fact that 1448 the repayment of moneys paid into the Unclaimed Balances Account can still be made provided that application is made to the Board before 1st October, 1964.
I hope that this answers the right hon. and learned Gentleman. No question of hardship is involved since the money represents premiums paid under private schemes in anticipation of the war damage scheme. The fact that the money represents premiums which have been unclaimed, rather than payments due for damage which could not be made because claimants had disappeared or changed their address, makes it fairly certain that no hardship is caused to anybody.

§ Sir Frank Soskice (Newport)
We are all grateful to the Minister for the slight correction which he has made to what the House was told on Second Reading. These premiums, I gather, relate to some private insurance scheme which preceded the war damage scheme. I agree that it appears to be extremely unlikely that one would now be able to trace those who are entitled to repayment of small sums of £6 and the like.
I do not know whether interest was charged to the Account and what a figure of £6 paid in 1940, with interest grossed up at compound interest, less Income Tax, would now provide, but an original figure of £6 would probably now be unrecognisable. I should agree, however, that justice would be done if the matter were advertised and possible claimants given until October, 1964, to make claims. Perhaps another year would be required to calculate the exact amount represented by the original sums.
I am grateful to the Minister for what he has said and I entirely accept it.

§ Mr. Maurice Macmillan
I beg to move, That the Bill be now read the Third time.
I have nothing to add except to thank the House and the right hon. and learned Member for Newport (Sir. F. Soskice) 1449 for their help in the speedy passage of this useful Measure. I am glad to have been able to reassure the House that the rights of the individual have been safeguarded and that the administration will be smooth enough to ensure that the time limit is reasonable. In reply to the point raised by the right hon. and learned Gentleman, I am glad to confirm that the expert advice which served the War Damage Commission so well will continue to be available, and that the transfer of expert staff will ensure that no extra burden is placed upon the Inland Revenue.
The House will, I think, agree that all who have been concerned with the work of the War Damage Commission in the early days, and more recently, can look back with pride at the way their task was handled and, now that it is virtually complete, can rest content that it has been formally ended with fairness, efficiency and dignity.

§ Sir F. Soskice
I should certainly respond to what the Minister has said on Third Reading. Clearly, this is not a Measure which requires lengthy speeches at this stage. I concur with the Economic Secretary to the Treasury in his word of farewell and expression of gratitude to the many people concerned in administering this gigantic scheme.
I am glad to hear that the slight anxiety voiced during Second Reading of the Bill about whether the Inland Revenue would be overburdened by the task of having to discharge the remaining claims is an anxiety which need not press upon us. I quite understand that the transfer of staff will be adequate to shoulder the new burden which is placed upon that Department.
I conclude simply by thanking the Ministers for the clarity and care with which they have presented this Measure and expounded its purposes and provisions to the House.