Premium Savings Bonds (Hansard, 28 March 1957)

§ 37. Mr. Hamilton
asked the Chancellor of the Exchequer whether, in view of the slump in the sale of Premium Savings Bonds and the consequent under-employment of the staff at the Lytham St. Annes offices, he will now wind up the scheme in the interests of the national economy.

§ Mr. Powell
No, Sir.

§ Mr. Hamilton
Does the Minister not admit that the results arising from this scheme have been disappointing? Further, could he say by how many the staff at Lytham St. Annes has been reduced from the thousand-odd who were there at first, and would he confirm or deny the allegation which has been made that many of the girls there are spending their time knitting and doing crossword puzzles?

§ Mr. Powell
Questions concerning the staff at Lytham St. Annes are for my right hon. Friend the Postmaster-General. As regards the success of the scheme, the House may wish to know that it has made a more important contribution to net saving than any other form of security.

Mr. H. Wilson
Whatever the hon. Gentleman means by "net saving", is he aware that the biggest proportion of contributions to the Premium Savings Bonds scheme was a transfer very largely of Surtax payers last November and that the results since then have been quite insignificant in terms of new saving? Since the hon. Gentleman has told us that the scheme is costing £ 30,000 a week to operate, and in view of the stories of people doing crossword puzzles, knitting and all the rest, is he aware that this is completely contrary to all the pledges we had from hon. Members opposite about reducing the numbers of uselessly employed bureaucrats?

§ Mr. Powell
There is no need for the right hon. Gentleman to run away so soon from his expression of certainty in the Budget debate last year that the Premium Savings Bonds would be very popular. Indeed, as I say, they are making the greatest contribution of all the resources of National Savings to net savings.

§ 38. Mr. E. Fletcher
asked the Chancellor of the Exchequer what were the sales of Premium Savings Bonds for the months of December, January, and February, respectively.

§ Mr. Powell
The figures are approximately:— December, £ 5,530,000; January, £ 5,380,000; February, £ 3,530,000.

§ Mr. Fletcher
Would the Minister agree that those figures indicate that the Premium Savings Bonds have lost their popularity?

§ Mr. Powell
No, Sir. It was always anticipated that sales would be highest in the early part of the six-month period.

Mr. H. Wilson
While I am prepared to accept that I overestimated the popularity of these bonds, except with Surtax payers, and while some of us are sometimes willing to confess when we are wrong, will the hon. Gentleman now admit that this is another of the Prime Minister's gimmicks that failed, and call the whole thing off?

§ Mr. Powell
It is a gimmick which was greatly welcomed by the National Savings Movement and which the Movement is using to such effect that, as I have already twice told the House, it is the most effective instrument which is at the moment at its disposal.