§ Mr. Norman Lamontasked the Secretary of State for Social Services (1) what is the latest date for which accounts for the Hospital Endowments Fund are available; and what is the reason for the delay in providing more recent accounts;
(2) who is responsible for the day-to-day management of the Hospital Endowments Fund;
(3) what is the average gross return—capital appreciation plus income—per annum measured on a time-weighted basis, allowing for withdrawals and new money being available, that has been earned on the Hospital Endowments Fund since inception, and for the last five years;
(4) whether he is satisfied with the arrangements for monitoring the investment performance of the Hospital Endowments Fund; and whether he will take steps to ensure that the standards for monitoring the performance of the 77W fund correspond with those widely used in the private sector;
(5) after allowing for inflation what was the change in the real capital value of the Hospital Endowments Fund, after making allowances for withdrawals or additions of money, in the last year for which statistics are available; and
(6) upon what basis the proportion of the Hospital Endowments Fund invested in equities was determined.
§ Sir K. JosephThe Hospital Endowments Fund accounts are prepared for each financial year to 31st March, and the latest available are for 1971–72. The arithmetical average gross return—capital appreciation plus income—per annum earned on the fund since inception is about £415,000 and for the last five years £809,000. The increase in the market value of the fund in 1971–72, after allowing for inflation, has been calculated as approximately £2.9 million. The National Debt Office, on my behalf, with the advice of the Government Broker, and in co-operation with my Accountant General's Department, is responsible for day-to-day management. Having regard to the objectives of the fund, satisfactory arrangements and standards for monitoring the investment performance exist and will continue until the fund is wound up in accordance with the provisions, if Parliament approves, of the National Health Service Reorganisation Bill. Investment in equities has followed the broad guidelines of the Trustee Investment Act 1961.