§ 53. Wing - Commander Roland Robinsonasked the Chancellor of the Exchequer whether he is aware that the Co-operative Wholesale Society's Bank is offering local authorities an interest rate of 1 per cent. on current accounts, as opposed to no interest from the joint stock banks, and 2 per cent. on deposit 766 accounts provided seven days' notice of withdrawal is given, as opposed to one-half of one per cent. offered by the joint stock banks with 14 days' notice of withdrawal; and how he proposes to meet this threat to his cheap money policy.
§ Mr. DaltonI am aware of these facts, and am in touch with the Co-operative Wholesale Society on this subject.
§ Wing-Commander RobinsonCan the Chancellor of the Exchequer say what inducements there are to lenders to take out Treasury Bills or long-term Government loans at 2½ per cent., when they can do seven days' business with the Co-operative at 2 per cent.? Does he not think it right that the Co-operative Bank should be put under the same Treasury policy and have to pay the same as the joint stock banks?
§ Mr. DaltonAs I have said, I am in touch with the Co-operative Wholesale Society on the subject. I have been in touch with them from time to time on a great number of matters, of which this is only one, and they have given great support to the Government in many respects, not least by holding £200 million Government securities, which is more than most private enterprises hold. As I have said, I am in touch with them on this matter, and they are well aware that I Should welcome a reduction in interest rate—they know that, and I have told them. They did, in fact, at my request make a reduction at the beginning of last year, and I am in touch with them again.
§ Captain CrowderIs it not a tact that instructions have been given by the Treasury to the joint stock banks that they are not to give more than half per cent. on deposit accounts, and if such instructions have been given, why not give similar instructions to the Co-operative Society?
§ Mr. DaltonI do not know whether this House wants me to use my powers of direction under Section 4 of the Bank of England Act, but if that is the request of the Opposition, I will take it into account.
§ Brigadier MackesonIs it the desire of the Chancellor of the Exchequer that local authorities should bank with the Co-operative Society?
§ Mr. DaltonI would not venture to intervene in what is a matter of choice for the local authorities.
§ Mr. HoggWhat we want is that the Chancellor of the Exchequer should operate his powers fairly and equally.