54. Mr. De la Bèreasked the Chancellor of the Exchequer whether he can give an assurance that the Government will not adopt the suggestions made by Professor J. M. Keynes on compulsory savings, or anything akin to them; and whether the Government will direct their attention to ensuring, as far as possible throughout the country, an excess of in come over expenditure, and, in order to create genuine savings, encourage reason able profits from industry as a means to this end?
§ Sir J. SimonIn reply to the first part of the Question, I would refer my hon. Friend to the reply which I gave on 5th March to my hon. Friend the Member for Eccles (Mr. Cary). As regards the second part, the considerations referred to, along with other relevant considerations, are constantly borne in mind.
Mr. De la BèreIs it not a fact that compulsory saving would create a vicious circle by reducing purchasing power and consequently reducing the source from which Income Tax is derived, and, further, would not excess unemployment created by closing down productive undertakings outweigh any gains that compulsory saving might secure?
§ Sir J. SimonThere are many considerations which must be borne in mind.
§ Sir H. WilliamsWill my right hon. Friend also bear in mind that the Keynes scheme would involve the application of a means test to 20,000,000 people?
Miss RathboneIs the right hon. Gentleman aware that opinion in commercial circles is increasingly—[Interruption.]