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Cable And Wireless Award (Interest)

Volume 462: debated on Thursday 3 March 1949

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51.

asked the Chancellor of the Exchequer what rate of interest will be paid as from 1st January, 1947, on the portion of the Cable and Wireless award payable to non-governmental bodies, namely, £32,195,000.

Three percent. per annum.

Can my hon. Friend say why, after this very lavish and extravagant award of £32 million, which has delighted the City, he should follow it up with a further award of £1,148,000 in interest after payment of tax, which has made the City delirious with joy?

Because it is in accordance with the Act. This interest goes back to 1st January, 1947.

Although it is in accordance with the Act the rate of interest was decided by the Treasury. Is not this wrong treatment of the national finances?

The rate of interest was decided by the Treasury in accordance with the terms of the Act.