HC Deb 18 January 1949 vol 460 cc112-3

Any order made under section two of the Savings Banks Act, 1920 (which section confers on the Treasury power to regulate within certain limits the rate of interest paid to trustee savings banks on their deposits), shall be subject to annulment in pursuance of a resolution of either House of Parliament.—[Mr. Glenvil Hall.]

Brought up, and read the First time.

7.12 p.m.

The Financial Secretary to the Treasury (Mr. Glenvil Hall)

I beg to move, "That the Clause he read a Second time."

Section 2 of the Savings Banks Act, 1920, empowers the Treasury, by order and within limits, to vary the interest rate on the deposits made by trustee savings banks with the National Debt Commissioners, but the 1920 Act did not make provision for these particular orders to come before this House and to be annulled if the House so decided. When we discussed this matter in Committee upstairs, the hon. Member for Altrincham and Sale (Mr. Erroll) raised the point. I then agreed that I would bring in a new Clause in proper form on Report. This is the Clause. It is technical in form. In 1946, we passed the Statutory Instruments Act and Section 5 (1) of that Act comes into play wherever the words which we use in this new Clause are inserted in a Bill passed after the date of that Act. The effect is that the words in the Clause will make it possible for any order made in future to be brought before this House and to be annulled by negative Resolution.

Mr. Erroll (Altrincham and Sale)

We are indeed grateful to the Financial Secretary for meeting us in this way. The new Clause will enable matters affecting the trustee savings banks and their interest rate to be discussed at any time when the interest rate is changed. That may be a small matter, but, after all, the trustee savings banks are very rarely discussed in this House, and it is obviously desirable that it should be possible to discuss their finances as they will be affected by any change in interest rate when the Treasury are proposing to change that rate. We are most grateful to the Financial Secretary for making this possible to the House.

Clause read a Second time and added to the Bill.