§ 35. Mr. N. Pannellasked the Chancellor of the Exchequer whether he will now favourably consider a fresh issue of National Savings Certificates and/or higher interest rates for Post Office Savings, to bring them more in line with present money rates and so, by the encouragement of thrift, combat inflation in the most effective manner.
§ Mr. H. BrookeWe are all agreed that National Savings should be encouraged; and while I do not think that the measures suggested by my hon. Friend would be the best way, my right hon. Friend has recently approved the introduction of a new issue of Defence Bonds bearing interest at 4 per cent. and the raising of the limit on holdings of National Savings Certificates from 1,000 to 1,200 units.
§ Mr. PannellWhile thanking my right hon. Friend for that reply, may I ask him to take into account that over the last ten years the increase in the value of National Savings Certificates has been offset by the fall in the purchasing power of the £? Does he not think that the time has come to offer greater inducements to small savers to invest in Savings Certificates?
§ Mr. BrookeI attach very great importance to keeping up the sales of Savings Certificates, but those sales are going reasonably well at present and I am certainly not advised that they would be accelerated by a new issue on more favourable terms.