POST OFFICE SAVINGS BANK: RESERVE AGAINST DEPRECIATION OF SECURITIES.
An Coiste um Chuntais Poiblí.
At the proceedings of the Committee on the 15th December, 1960, the representative of the Department of Finance undertook to furnish a note on the reserve against depreciation in the value of the securities of the Post Office Savings Bank Fund.
The annual allocations from the surplus income of the Fund for depreciation are utilised both to offset capital losses incurred on the sale of securities and to provide against book deficiencies emerging on the annual valuation of the assets of the Fund.
The general rise in interest rates for some years past has reduced the market value of Government stocks and, as a result, the depreciation allocations made up to the end of 1959 have been fully utilised. As the published annual accounts of the Bank for 1959 show, there remained a book deficiency of £1.7 million between the value of the assets of the Fund and the amount of its liabilities at the end of that year. It is anticipated that when the available surplus income for 1960 has been allocated to reserve the deficiency should be reduced below one million pounds, and should be eliminated entirely by the end of 1961, provided there is no further substantial increase in interest rates in the meantime.
(Signed) T. K. WHITAKER,
An Roinn Airgeadais.
20 Eanáir, 1961.