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What is the purpose of the second sinking fund concerning the new functions?
I agree that the only proper sinking fund is to have a surplus revenue over expenditure.
There is another kind provision, that for twenty-five years there shall be no compulsory sinking fund.
But that is entirely a different position from what we have here when we are dealing with the statutory sinking fund of a public undertaking.
He has to provide even now a bigger sinking fund.
Then he said there was no sinking fund.
The amount of the annual sinking fund payment would be fixed, but its duration would be indefinite.
The only real sinking fund is where you have a surplus of revenue over expenditure out of which public debt can be discharged.
These deposits will be made in respect of (a) interest, and (b) sinking fund.
It appears to be a matter of doubt whether the local councils may or may not bear the sinking fund charges themselves.
I know perfectly well where this fantastic inter-departmental sinking fund comes from.
Suppose that there were no sinking fund and that the annual payments were then reduced to £77.
Not only would it be unbalanced but, to the degree that it exceeded £224,000,000, we would have what might be called a negative sinking fund.
If this debt continues to pile up and no adequate sinking fund can be established, the situation may become indistinguishable from repudiation.
There are very many concerns which have a rigid sinking fund, but this is simply an invitation to slack finance.
