HC Deb 22 November 1956 vol 560 cc1910-1
12. Mr. Gresham Cooke

asked the Chancellor of the Exchequer if he will consider introducing a special class of Premium Bonds, which would be nontransferable and non-encashable until the holder reached the age of 65 years, and obtainable in exchange for post-war credits, and which would entitle the holder thereof to a prize, if drawn, but to no other benefit, this concession to be available to those who buy an equal amount of ordinary Premium Bonds.

22. Lieut.-Colonel Lipton

asked the Chancellor of the Exchequer whether he will cancel post-war credits by issuing Premium Bonds in lieu.

The Financial Secretary to the Treasury (Mr. Henry Brooke)

The answer to both Questions is, "No, Sir".

Mr. Gresham Cooke

As many of us will not get our hands on our post-war credits for many years, would not this scheme be rather a nice gesture to frustrated sections of the community, and also help the sale of Premium Bonds quite considerably?

Mr. Brooke

My hon. Friend has been ingenious but, of course, the prizes on Premium Savings Bonds are the equivalent of interest, and it has always been held that if there were additional money available for post-war credits, it would be better to use that money for speeding up their repayment than for paying interest on those which have still not been paid.

Lieut.-Colonel Lipton

What is the use of saying that premium is the equivalent of interest and that the Government would rather accelerate the repayment of postwar credits, when the Government have no intention of doing anything in either respect? Is not the Financial Secretary aware that post-war credit holders have had a particularly raw deal in that they will get back no more than half of their capital? In the meantime, would he agree that there is no moral or economic reason why they should not be allowed a flutter in Premium Savings Bonds by way of recompense?

Mr. Brooke

The short answer to the hon. and gallant Member, who has asked, if I may say so, a question less shrewd than that of my hon. Friend, is that Premium Savings Bonds are designed to attract new savings and not to act as a kind of new vehicle by which old savings can be redeemed.