§ Mr. ALAN HERBERTasked the Minister of Agriculture what sum will have to be accumulated annually as sinking fund in order to redeem the tithe stock issued in respect of £100 par value lay tithe of the net redeemable value of £51 19s. 9d.; and whether, in calculating the amount of the Exchequer contribution to meet the expenses of the tithe scheme, any sum was included in respect of any Government contribution to such sinking fund?
§ Mr. ELLIOTUnder Clauses 24 and 25 of the Tithe Bill it is proposed that a sinking fund sufficient to provide for the redemption of stock shall be established, and the sums required to be set aside for the purposes of the said sinking fund shall be paid out of the Redemption Annuities Account. On the basis of interest at 3 per cent.—the rate assumed 2215W in the White Paper—the annual amount to be set aside for accumulation in the sinking fund in respect of the compensation stock issued for every £100 (par value) lay tithe rentcharge of the net annual value of £51 19s. 9d. will be £10 9s. 2d.
As regards the last part of the question, the Exchequer contribution, as explained in the White Paper, is related to the average liability of the Exchequer in respect of rates on ecclesiastical tithe rentcharge during the past three years, in addition to certain anticipated extra receipts and savings which will result directly or indirectly from the operation of the Tithe Bill. No net additional charge is being placed on the taxpayer in connection with the scheme for the extinguishment of tithe rentcharge, and the Exchequer contribution goes into the scheme and will be available, together with the net receipts from the redemption annuities, to meet all the outgoings, including the monies required to be set aside for the purposes of the sinking fund.