§ Mr. BOWENasked the Financial Secretary to the Treasury (1) what surplus has been shown on the working of the Post Office Savings Bank during each of the past five years; and what proportion of the surplus has been paid to the Treasury;
(2) what were the reasons for reducing in 1925 the proportion of the surplus retained by the Post Office Savings Bank out of the annual surplus on its operations?
§ Mr. PETHICK-LAWRENCEThe law provides that when the interest earned by the Post Office Savings Bank Fund is insufficient to pay interest at 2½ per cent. to depositors, any deficiency shall be voted by Parliament. On the other hand, any surplus is payable to the Exchequer after deduction of a sum to be fixed by the Treasury to provide against depreciation. In 1877 this deduction was fixed at 5 per cent. of the surplus. The figure was raised to 50 per cent., representing in actual cash only £4,000, in672W 1912, and was reduced to 20 per cent., representing, however, in cash about £700,000, in 1925. The ground for the decision reached by my right hon. Friend's predecessor was presumably that the latter amount was considered a sufficient allocation for reserve. The surpluses on income account for the last five years have been:
Total surplus. Paid to Exchequer. £ £ 1925 … … 3,515,220 2,812,176 1926 … … 3,652,931 2,922,344 1927 … … 3,737,525 2,990,020 1928 … … 3,930,216 3,144,173 1929 … … 4,160,000* 3,340,000 *Provisional.