HC Deb 25 February 2002 vol 380 cc436-7
33. Mr. Andrew Lansley (South Cambridgeshire)

What the impact on their investment returns of their investment in (a) property and (b) equities has been, in the last five years. [34263]

Mr. Stuart Bell

Over the five years from 1996 to 2000, the commissioners' UK equities portfolio achieved a return of 17.2 per cent. per annum. Their overseas equities achieved 15 per cent. per annum, and the commissioners' commercial, residential and agricultural property holdings contributed to the outperformance, achieving returns of 15.1 per cent., 28.4 per cent. and 10.9 per cent. per annum respectively over the five years.

Mr. Lansley

I am grateful to the hon. Gentleman for his reply. In assessing the return on equities to the Church Commissioners, can he tell the House what is the loss resulting from the Government's change to advance corporation tax in the first Budget after the 1997 general election? How does it compare with the cash value of any reductions in the obligations which the Church Commissioners are taking on in the years ahead and transferring to the dioceses?

Mr. Bell

I am grateful to the hon. Gentleman for his question. I should add that the total return from our stock exchange and property investments over the five-year period was 15.9 per cent. As for the advance corporation tax, matters relating to it were discussed with the actuary. I am happy to make a study for the hon. Gentleman and let him have a copy.

Mr. Robert Key (Salisbury)

Is the hon. Gentleman aware of the serious upset in the dioceses, especially the large rural ones, that any reduction, however small, in the support that the Church Commissioners can give the dioceses is passed straight on to the parishes, which not only have the burden of maintaining the fabric of ancient parish churches, but are now faced with the distinct possibility of not being able to afford a priest?

Mr. Bell

I am grateful to the hon. Gentleman. He should know that our legal duties are numerous; our commitments are to clergy and bishops, both in cathedrals and areas of need. We have a policy on areas of need and opportunity. If the hon. Gentleman has a particular case in mind, I should be glad to look at it and give him a response.