§ 54. Commander King-Hallasked the Chancellor of the Exchequer whether he will indicate to head offices of banks, insurance companies and other large commercial institutions that it is desirable that their investments in Government securities, in connection with "Salute the Soldier," should be made exclusively in the area where the head office is situated and not spread over their branches.
§ Sir J. AndersonNo, Sir. The funds at the disposal of these institutions for investment in War Loans are largely derived from the activities of their local branches. It is, therefore, quite proper that these institutions should allocate their investments to their branches and so enable each branch to partake in the savings movement of the local community to which it belongs. The practice has been generally followed in previous savings campaigns, and I fully approve its adoption in the forthcoming "Salute the Soldier Weeks."
§ Commander King-HallArising out of that reply, does the Chancellor not realise that, owing to the practice described in this Question, the small saver is led to suppose on the day the campaign opens that the object has largely been achieved, whereas, in fact, nothing of the kind has happened? Is that not an unsatisfactory state of affairs?
§ Sir J. AndersonI think not. I think it is all part of a necessary process of stimulating interest in small savings. I think we have every reason to be satisfied with the results so far achieved as a result of these campaigns.
§ Mr. StokesIs not the whole plan one of continuing to deceive the people in this matter?
§ Sir J. AndersonNo, Sir.
§ Mr. A. EdwardsDoes not the Chancellor's statement indicate that not one-tenth of these savings are genuine savings; and is it not a very expensive way of stimulating saving?
§ 55. Commander King-Hallasked the Chancellor of the Exchequer what is the maximum contribution for savings certificates a firm is allowed to charge against E.P.T. under the heading "welfare" in schemes to assist their employees to purchase War Savings Certificates.
§ Sir J. AndersonAs my predecessor explained on the 5th August, 1943, in reply to the hon. Member for Lincoln (Mr. Liddall) contributions made by an employer towards the purchase of National Savings Certificates by his employees normally rank as a deduction in computing his profits for taxation purposes, provided that such contributions are not unreasonable in amount. The question whether contributions made by 34 a particular employer should be regarded as unreasonable would need to be considered in the light of the full circumstances of the particular case.
§ Commander King-HallArising out of that reply, will the Chancellor agree that the case in which a 50 per cent. contribution is made is reasonable, in view of the fact that a person who buys a certificate can go on the same day to a Post Office and cash it for the full value, and is not the Chancellor losing revenue?
§ Sir J. AndersonI do not agree.
§ Mr. StokesDoes it not illustrate that the whole thing is absolute humbug?
§ Commander King-HallI beg to give notice that I shall raise this matter on the Adjournment.