HC Deb 18 January 1977 vol 924 cc175-7W
Mr. Litterick

asked the Secretary of State for Social Services (1) if he will publish in the Official Report a statement of the objectives his Department expects the managers of the National Insurance Fund to achieve; and if he will make a statement on the management of the funds assets since February 1974;

(2) if he will publish in the Official Report the criteria used by the managers

National Health Service hospitals, and as regards manpower information, by employing authorities in respect of staff in National Health Service hospitals, as follows:

of the National Insurance Fund in evaluating the assets of the fund;

(3) what is the current composition of the asset portfolio held by the National Insurance Fund managers;

(4) if the value of investment assets held by the National Insurance Fund was reassessed during 1976; and, if so, what was the result of that revluation in terms of the total value of the fund;

(5) at what date each year the assets held by the National Insurance Fund are revalued;

(6) how the variation in the value of these assets of the National Insurance Fund since February 1975 compares with variations in the Financial Times Share Index during the same period.

Mr. Orme

Under Section 133(3) of the Social Security Act 1975, the investment of National Insurance Fund moneys is made by the National Debt Commissioners, in accordance with orders in force under Section 22(1) of the National Savings Bank Act 1971 which provides for investment in Government securities and local government stock.

The Department expects from the Commissioners the achievement of maximum interest consistent with the availability of cash resources for the day to day requirements of the Fund. The income from investment was £134 million in 1974–75 and £193 million in 1975–76.

The published accounts of the National Insurance Fund list the assets and give both the cost price and market value at the end of the financial year.

Details of the increase in the value of the assets of the National Insurance Fund since it was merged with the National Insurance (Reserve) Fund and the Industrial Injuries Fund on 1st April 1975 will be given in the 1975–76 Account, due to be published soon.

Comparison with the Financial Times indext from February 1975 is not available but between 1st April 1975 and 31st March 1976 the respective variations in value were as follows: National Insurance Fund 1.9 per cent. increase. Government 20 year securities index: 1.25 per cent. decrease. Financial Times actuaries all share index: 43.11 per cent. increase.