§ 72. Mr. Bateyasked the Financial Secretary to the Treasury the total profits of building societies in Great Britain for the years 1936 and 1937?
§ Captain WallaceAs the answer contains a table of figures, distinguishing between the interest paid on shares and the additions to profit and reserve, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.
§ Following is the answer:
§ The estimated profits of building societies in Great Britain (in the sense of the interest paid on shares plus the additions to profit and reserve) amounted to £19,630,000 in 1936 and £20,720,000 in 1937, namely:
| 1936. | 1937. | |
| £ | £ | |
| Interest on shares | 16,020,000 | 16,857,000 |
| Additions to profit and reserve | 3,610,000 | 3,863,000 |
| £19,630,000 | £20,720,000 |
§ 73. Mr. Bateyasked the Financial Secretary to the Treasury whether he can again take steps to have further reduced the 4½ per cent, charged by building societies, so that working men may be able to purchase their houses without having to pay so much in interest?
§ Captain WallaceThe rate of interest charged by building societies is a matter for determination by the societies themselves.
§ Mr. BateyIs the Minister not aware that some time ago action was taken by his Department which brought down the rate of interest from 5 to 4½ per cent., and in view of the low rate of interest 584 allowed by banks, is it not time that the 4½ per cent, charged by the building societies was reduced?
§ Captain WallaceI am aware that the Ministry of Health negotiated special terms with the societies in 1933 for housing under the Housing Act of that year, which involved a measure of guarantee by both the taxpayers and the ratepayers, but that action is no precedent for undertaking general negotiations about the rates of interest charged to owner-occupiers.