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Coal Industry (Compensation Stock)

Volume 477: debated on Tuesday 4 July 1950

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55.

asked the Chancellor of the Exchequer why the interest on the first stock issued for the purpose of paying compensation under the Coal Industry Nationalisation Act was fixed at 31 per cent.

Because under Section 21 (3) of the Coal Industry Nationalisation Act, 1946, stock must be equal in value to the compensation at the date of issue.

Is the Chancellor aware that we are paying £13 million in interest and sinking fund to the coalowners this year, which is a heavy burden on the industry and on the consumer? Is there no prospect of it being reduced?

This was laid down by Parliament in the Act I mentioned, and I have to administer it.

Is it not a fact that this stock has to pay 3½ per cent. interest as against the 2½ per cent. issued by the Treasury, which shows that Government credit has gone down by 1 per cent.?

81.

asked the Minister of Fuel and Power how much of the £20,000,000 of 3½ per cent. Treasury Stock, recently issued as a first instalment of the compensation to be paid under the Coal Industry Nationalisation Act, has been paid to coalowners in Scotland.

The amount of Treasury Stock issued as a first instalment of compensation to be paid under the Coal Industry Nationalisation Act to coalowners in Scotland was £220,500.

Is this small proportion due to the fact that some of these Scottish owners have declined their compensation?