Trustee Savings Banks (Limited Cheque Scheme)

HC Deb 25 January 1962 vol 652 cc380-1

6. Mr. Jay

asked the Chancellor of the Exchequer whether he will now make a statement on the introduction of limited cheque scheme by the trustee savings banks.

Mr. Barber

I discussed their proposals for a limited cheque scheme with representatives of the Trustee Savings Banks Association last week. As agreed at that meeting I have invited representatives of the joint stock banks to come and discuss the scheme with me.

Mr. Jay

As this matter, which ought to have been settled in a few months at the most, has now dragged on for about three years, partly owing to the Government having given a right of veto to the commercial banks over the trustee savings banks, can the hon. Gentleman assure us that we will have a decision soon? His Answer is very disappointing.

Mr. Barber

The right hon. Gentleman has misunderstood the facts. There is no question of the Government giving a right of veto. As for the delay which has occurred since I first saw representatives of the trustee savings banks, I can only say that the initiative has lain with the Association for about a year and a half from April, 1960, until its latest memorandum was received in the Treasury only last month. As soon as I received it and had time to consider it, I saw the Association's representatives only last week. Already, the Treasury is in touch with the joint stock banks in the hope that we can meet in the near future.

Mr. Jay

Is it not a fact that the joint stock banks prepared and issued their scheme about three years ago and that the Government asked them to discuss it with the commercial banks before it went further? Can the Economic Secretary hold out hope that he will be introducing the necessary legislation fairly soon?

Mr. Barber

No, Sir. The position is that when representatives of the Trustees Savings Banks Association came to see me originally to discuss the matter, there were a number of matters of great importance which still had to be considered further if the scheme was to work effectively. One of them was the question of joint stock bank co-operation, which would be essential to any such scheme. This was obviously the next move that should take place. I ought to make it clear that there are still considerable administrative and practical problems to be overcome if such a scheme is to be implemented. For my part, however, I hope that I shall be able to see the joint stock banks just as soon as is convenient to them.