HC Deb 13 November 1919 vol 121 c536W
Major NEWTON

asked the hon. Member for the Newbury Division, as representing the Ecclesiastical Commissioners, whether, in view of the financial straits in which many of the clergy now find themselves owing to the increased cost of living, and having regard to the high rate of interest now obtainable by the Ecclesiastical Commissioners, the Commissioners will consider the possibility of increasing the rate of interest allowed on all benefactions and grants made to meet benefactions from 3 per cent, to 4 per cent.?

Mr. MOUNT

The benefactions and grants made to meet benefactions secured to livings prior to the year 1915, and upon which the Ecclesiastical Commissioners have pledged themselves to pay in perpetuity annuities equal to 3 per cent., are not held on deposit, but were invested from time to time with other funds of the Commissioners. Although the investments were made at the Commissioners' own risk, the interest received thereon was in most years very little in excess of, and in some years was actually less than, the annuities paid. Generally the Commissioners are receiving the same income on these investments now as when the investments were made, while, on the other hand, the securities have greatly depreciated in value. Nothing would, therefore, be gained by a sale and reinvestment. For these reasons the Commissioners would not be justified in increasing the annuities. Since 1915 the Commissioners have paid 4 per cent, on cash benefactions and on grants made to meet the benefactions. Moreover, securities at their market value continue to be accepted in lieu of cash benefactions, but in such case the Commissioners are not responsible for any depreciation in value.