§ Mr. GINNELL
asked the Secretary to the Treasury the total amount paid into the Sinking Fund by purchasers under the Irish Land Acts of 1903 and 1909 to the 31st December 1913; the rate at which that money is invested; the annual revenue from that amount at that rate; to what purpose the revenue is applied; and the effect on the duration or amount of purchasers' annuities under the two Acts mentioned, respectively?
§ Mr. MONTAGU
The answer is as follows:—
1. Advances under the Acts of 1903 and 1909, repayable by a 3¼ per cent. annuity. —The Sinking Fund repayments and the interest earned by Sinking Fund investments are invested in further advances under Section 36 (2) of the Act of 1903. Such investments are made at the rate of 2¾ per cent. interest, being the same rate as was assumed when the annuity was fixed:—
The total amount of Sinking Fund repayments to 31st December, 1913, was £1,160,174 And the interest earned and capitalised has been 100,296 £1,260,470 The annual revenue at 2¾ percent. on £1,260,470 is £34,663
2. Advance under the Act of 1909 repayable by a 3½ per cent. annuity.—These advances being made in Guaranteed Three per Cent. Stock at its face value, the Sinking Fund repayments are invested in that stock, and for the present are assumed to accumulate at 3 per cent. The total amount of Sinking Fund received to 31st December, 1913, was £14,311, and the interest earned for reinvestment £335. The Guaranteed Three per Cent. Stock purchased for the Sinking Fund amounts to £8,876, on which a year's interest at 3 per cent. is £266, and £7,313 remained uninvested.