HC Deb 12 November 1957 vol 577 cc758-9
23. Mr. Osborne

asked the Chancellor of the Exchequer if he is aware that institutions calling themselves banks are advertising for deposits at 8½ per cent. interest free of tax; and, since such a high rate of interest cannot be paid with safety, if he will take steps to prohibit the use of the term bank to such speculative ventures.

Mr. P. Thorneycroft

There is no power to prevent an institution describing itself as a bank though it may be prevented from including it as part of its registered name.

Mr. Osborne

But does my right hon. Friend consider any institution which can offer an interest of 8½ per cent. free of tax to be sound? Ought not some steps to be taken to safeguard ordinary people from being swindled of their hard-earned savings?

Mr. Thorneycroft

It is not for me to advise on rates of interest between individuals of that character.

Mr. H. Wilson

Surely the hon. Member for Louth (Mr. Osborne) has a point here. Will the Chancellor study the article on this subject in a special issue of the Manchester Guardian this morning? In the light of that, if he says that he has not the powers, will he introduce powers, because we can promise him a pretty easy passage for such a Bill?

Mr. Thorneycroft

My hon. Friend the Member for Louth (Mr. Osborne) may be right that there may be some case for examination of lending by institutions outside the banks, but that raises a very wide issue which I would not propose to deal with in this answer.