HC Deb 07 November 1961 vol 648 cc788-90
30. Mr. C. Johnson

asked the Chancellor of the Exchequer whether he is satisfied that the provisions which exist for the control of loan societies and their officers and the protection of their members under the Loan Societies Act, 1840. are adequate today, in view of the changes which have occurred since the Act was passed; and if he will make a statement.

Mr. Barber

Yes, Sir. I am satisfied that the provisions of the Loan Societies Act, 1840, are adequate in the present circumstances.

Mr. Johnson

In view of the fact that the provisions of that Act were attuned to the era of the 1840s and that there has been no amending legislation since then, will the hon. Gentleman ask his right hon. and learned Friend the Chancellor of the Exchequer to reconsider the position in view of the limit provided by the Act of £15 on the amount of advance, which by present-day standards is an insignificant amount? Moreover, does not that restriction explain the decline in the registration of certified societies in recent years?

Mr. Barber

There are, of course, very wide facilities now available to the community. I would only point out to the hon. Gentleman that there have been no complaints either from the members or from officers of certified societies as to the inadequacy of the 1840 Act or, indeed, about the existence of any abuses. If the hon. Gentleman has any specific point in mind, I shall be very happy to look into it.

31. Mr. C. Johnson

asked the Chancellor of the Exchequer whether he will make provision to enable loan societies to be registered as friendly societies under the provisions of the Friendly Societies Act, 1896.

Mr. Barber

No, Sir.

Mr. Johnson

As the Treasury has power, which it has frequently exercised in the past, to extend the provisions of the Friendly Societies Act to such societies, but their extension to loan societies was limited to agricultural and horticultural societies as long ago as 1917, purely for war purposes, will the hon. Gentleman ask his right hon. and learned Friend to review the whole position, particularly as loan societies now have their rules approved by the Registrar of Friendly Societies and also submit their annual accounts to him?

Mr. Barber

If I heard the hon. Member aright, the answer to his question is that we take the view that the Friendly Societies Act, 1896, is not an appropriate Act to govern the operation of societies which have as their only object the lending of money to members. The hon. Member referred to the decision which was taken in 1917. From the information which I have gathered, I understand that it was not a decision taken solely because of the position during the First World War, but was taken also to prevent certain abuses and, consequently, that the principal reasons for the decision then taken still apply today. It is for that reason that I cannot accede to the hon. Member's request.