§ Read 3a (according to Order).
§ Clause 1:
§ Investment of moneys received in respect of special investments.
§ 1.— (1) Notwithstanding anything in any Act, but subject to any regulations made in that behalf by the Treasury, the National Debt Commissioners may, if they think fit, on the application of the trustees of a trustee savings bank, authorise moneys received by the trustees in respect of special investments to be invested—
§ (a) in any such securities as are mentioned in any of the following enactments, that is to say, paragraph (m) of subsection (1) of Section one of the Trustee Act, 1925, and sub-paragraphs (6) and (7) of paragraph (a) of Section ten of the Trusts (Scotland) Act, 1921, being securities which will mature for payment not later than fifteen years after the date of the investment;313
§ (3) The trustees of a trustee savings bank shall have, and shall be deemed always to have had, power to deposit moneys received by them in respect of special investments in a bank other than a savings bank, either on deposit account or on current account.
EARL STANHOPE moved, in paragraph (a) of subjection (1), to leave out "paragraph (m)" and insert "paragraphs (m) and (q)." The noble Earl said: My Lords, this is an Amendment to which, I am afraid, Lord Strabolgi will object as being yet another case of legislation by reference. This is a clause that was asked for by the Government of Northern Ireland, and what it means is this. There are trustee savings banks in Northern Ireland, and as the law stands at present they would be entitled to invest in, we will say, City of Belfast stock if it was raised in the United Kingdom, but they would not be entitled to invest in Northern Ireland stock raised by their own Government. The actual words of the Trustee Act, 1925, are:
A trustee may invest any trust funds in his hands, whether at the time in a state of investment or not, in manner following, that is to say:
(q) In any stock or securities issued in respect of any loan raised by the Government of Northern Ireland.
The effect is to allow trustee savings banks to invest in securities in Northern Ireland in addition to those in the Bill.
Page 1, line 15, leave out ("paragraph (m)") and insert ("paragraphs (m) and (q)").—(Earl Stanhope.)
§ On Question, Amendment agreed to.
§ LORD STRABOLGI moved, in subsection (3), to leave out, "and shall be deemed always to have had". The noble Lord said: My Lords, this Amendment was put down in order to give the noble Earl an opportunity of explaining why this legislation is retrospective.
Page 2, line 41, leave out the said words.—(Lord Strabolgi.)
§ EARL STANHOPE
My Lords, I can soon explain that. Some doubt has been cast on this point, although it has actually never been before the Courts. The trustee savings banks have quite definitely the right to invest their ordinary funds, or rather to leave them in the hands of the Treasurer, who is very often a banker, but they have actually no 314 power in regard to their special investment funds, which are referred to in this Bill. It has been the common practice of banks for many years to do it, and as this Bill was coming on, it was thought best to make it clear that they had the power.
§ Amendment, by leave, withdrawn.
§ Bill passed, and sent to the Commons.