National Savings Bank Act 1971

Management of investment deposits

21 National Savings Bank Investment Account Fund

(1) The Director of Savings shall keep a separate account of all sums received or paid with respect to investment deposits.

(2) The said account shall be known as the National Savings Bank Investment Account Fund and is in this Act referred to as " the Investment Account Fund "

(3) The sums to be debited from time to time to the Investment Account Fund shall include—

(a) such sums as the Treasury may determine to be equal to those expended by the Director of Savings in connection with investment deposits;

(b) such sums as the Commissioners and the Treasury may agree to be due to the Commissioners in respect of expenses incurred by them in connection with investment deposits; and

(c) such sums as may be necessary to secure that, year by year, there is contributed to the Exchequers of the United Kingdom and Northern Ireland as nearly as may be what would have been contributed thereto in respect of the National Savings Bank by way of corporation tax if—

(i) the National Savings Bank were a savings bank certified under the [1969 c. 50.] Trustee Savings Banks Act 1969,

(ii) section 339(1) of the [1970 c. 10.] Income and Corporation Taxes Act 1970 (exemption of trustee savings banks from tax in respect of income arising from investments with the Commissioners) had not been enacted, and

(iii) the business of the National Savings Bank were confined to activities concerned with investment deposits.

(4) Sums debited by virtue of paragraph (a) or (c) of subsection (3) above shall be paid into the Consolidated Fund, and those debited by virtue of paragraph (c) shall be treated, for the purposes of subsection (2) of section 22 of the [1920 c. 67.] Government of Ireland Act 1920 (annual determination by Joint Exchequer Board of what part of the proceeds of the reserved taxes is properly attributable to Northern Ireland), as being proceeds of the duties and taxes referred to in subsection (1) of that section.

22 Investment of investment deposits

(1) The balance of the sums credited to the Investment Account Fund over the sums debited to the Fund shall from time to time be paid over to the Commissioners for investment, in accordance with any directions given by the Treasury, in any such manner for the time being specified in Part II of Schedule 1 to the [1961 c. 62.] Trustee Investments Act 1961 as the Treasury may by order specify.

(2) Any sums received by the Commissioners in respect of investments made under this section shall, in accordance with any directions given by the Treasury, be re-invested under this section or paid over to the Director of Savings and credited to the Fund.

(3) The Commissioners shall keep a separate account of all receipts, investments and payments under this section and shall furnish to the Director of Savings such statements of and information as to those investments at such times as may be agreed between them.

(4) Where the investments specified in an order under this section include investment in the manner specified in paragraph 9 of Part II of Schedule 1 to the [1961 c. 62.] Trustee Investments Act 1961, the provisions of Schedule 1 to this Act shall apply with respect to any loan made in pursuance of the order to any such authority as is specified in sub-paragraphs (a) to (c) and (e) of the said paragraph 9.

(5) The power to make an order under this section includes power to vary or revoke any such order by a subsequent order.

23 Annual accounts with respect to investment deposits

(1) The Director of Savings and the Commissioners shall prepare, as respects each year ending with 31st December, a statement of accounts of the Investment Account Fund.

(2) The statement of accounts for each year shall, before the end of May next following the expiration of the year, be transmitted to the Comptroller and Auditor General who shall examine, certify and report on it and lay copies of it, together with copies of his report, before Parliament.