HC Deb 07 February 1977 vol 925 cc561-3W
Mr. Wrigglesworth

asked the Secretary of State for Employment what were the

Year ended 31st March Costs of collection £ Percentage to total contributions collected Percentage increase in collection costs each year
6th December 1965 to 31st March 1966 56,694 1.1
1967 146,096 0.7 Previous period not a complete year
1968 211,845 0.6 45.0
1969 251,281 0.6 18.6
1970 315,062 0.6 25.4
1971 329,200 0.7 4.5
1972 434,294 0.8 31.9
1973 469,520 0.9 8.1
1974 800,615 1.6 70.5
1975 898,496 1.8 12.2
1976 1,470,908 1.6 63.7

Mr. Wrigglesworth

asked the Secretary of State for Employment what were the costs of administration of the Redundancy Fund in each year since its inception; what percentage of the fund this represented; and what was the overall percentage increase each year.

Year ended 31st March Administration Costs £ Percentage to total income to Fund in the year Percentage change in administration costs each year
6th December 1965 to 31st March 1966 73,312 1.4
1967 504,758 2.5 Previous period not a complete year
1968 856,844 2.5 +69.8
1969 1,060,566 2.4 +23.8
1970 1,127,592 2.2 +6.3
1971 1,223,454 2.4 +8.5
1972 1,444,897 2.8 +18.1
1973 1,421,756 2.7 -1.6
1974 1,647,864 3.2 +15.9
1975 2,123,304 4.0 +28.9
1976 3,058,790 3.4 +44.1

Mr. Wrigglesworth

asked the Secretary of State for Employment what rates of interest were paid on the Redundancy

costs of collection for the Redundancy Fund in each year since its establishment; what percentage of the funds collected this represented; and what was the overall percentage increase each year.

Mr. Golding

The following information is based on the Redundancy Fund accounts published each year by Her Majesty's Stationery Office:

Mr. Golding

The administration costs of the Redundancy Fund, published in the Redundancy Fund accounts each year by Her Majesty's Stationery Office, are as follows:

Fund in each year since its establishment; and how they compare with commercial rates of interest over the same period.

Mr. Golding

The rates of interest payable on Redundancy Fund borrowings and investment as shown in the annual Redundancy Fund accounts published by Her Majesty's Stationery Office are as follows:

year Interest charged on borrowing Interest payable on invested surplus
1965–66 6% Exchequer Stock
1966–67 6¼% to 6¾%
1967–68 5¾% to 7¾%
1968–69 7½% to 8⅝%
1969–70 8¼% to 9¼%
1970–71 6% Conversion Stock
1971–72 4½%
1972–73 4½% to 8½%
1973–74
1974–75 5½% Treasury Stock
1975–76 8¾% to 9⅝%

In addition there was short-term investment each year in Treasury bills at a rate of interest equivalent to the then current minimum lending rate or in very short-term investment in Ways and Means Advances at a rate ½ per cent. below the minimum lending rate. It is not possible to give a satisfactory reply to the remainder of the Question.