§ 33. . Sir F. Medlicottasked the Chancellor of the Exchequer what has been the cost of the Premium Bonds scheme up to the present time, distinguishing between prizes and advertising and administrative costs; and what is the ratio between the total expense incurred and the amount of money invested.
§ 35. Dr. Kingasked the Chancellor of the Exchequer the total amount lent to the Government in Premium Bonds; the amount paid out as prizes; and the administrative and advertising costs of the scheme for the latest available date.
§ Mr. PowellThe amount remaining invested in Premium Savings Bonds at 534 the end of June was about £82½1 million. The total prize money in the first two draws was slightly below £1¼ million, and administrative and advertising costs up to the end of the second draw are estimated at £1,650,000. The ratio between the total expenses incurred and the amount invested is about 1 to 28.
§ Sir F. MedlicottIs my hon. Friend satisfied that he is not having to pay rather heavily for the money that is being raised in this particular way?
§ Mr. PowellThis is a most welcome addition to National Savings. The recent results have been very promising indeed, and so far it has been well worth the investment.
§ Dr. KingCan the Financial Secretary give any estimate of the new money included in the figures which would not have been lent to him under old schemes? Is he really of the opinion that the very heavy expenses he has mentioned warrant the new scheme, having in mind the money which would have been subscribed under the ordinary system?
§ Mr. PowellThe hon. Member must bear in mind that National Savings generally, as well as the Premium Bond scheme within National Savings, did extremely well last year, and are doing very well this year.
§ Mr. JayDoes the hon. Gentleman think that the diversion of all this money from the gilt-edged market is one of the causes of the fall in gilt-edged prices?
§ Mr. PowellNot a large part of what is bought in ones and twos and small denominations is likely to be diverted from the gilt-edged market.
§ Mr. GrimondCan the hon. Gentleman say how the administrative expenses compare with the administrative expenses of other forms of National Savings; and whether the use of the automatic machine is an economy?
§ Mr. PowellI think the question of the automatic machine is one for my right hon. Friend the Postmaster-General to answer. Of course, there is no other form of National Savings which has been so recently launched and on which, therefore, the initial publicity cost is so high.
§ Mr. Gibson-WattWould not my hon. Friend agree that a great number of 535 people who invest in this particular type of bond would never otherwise put their money into savings?
§ Mr. PowellI am quite certain of that.
§ Mr. ShinwellCan the Financial Secretary say how many right hon. and hon. Members have invested in Premium Bonds?
§ Mr. PowellIt would not be proper for those names to be discosed.