HC Deb 11 June 1947 vol 438 c1308

Motion made, and Question proposed, "That the Clause stand part of the Bill."

Mr. Birch

The Committee should realise two short points before we part with this. It is generally calculated that these institutions require a rate of interest of at least 2¾ per cent. in order to pay their way. I imagine that they are getting something like 2¼ per cent., so we are, in effect, subsidising saving. This will have a great effect upon the figures of small savings. What the Chancellor is doing is paying five times the rate for short money. He is paying 2½ per cent. for short money while the market rate is ½ per cent. At the end of the year there will be enormous trumpeting that small savings are very satisfactory because the money is in the Post Office and the Trustees Savings Bank has gone up by a large number of millions.

Question put, and agreed to.

Clause ordered to stand part of the Bill.