HC Deb 27 November 1962 vol 668 cc186-8
9. Mr. Jay

asked the President of the Board of Trade if he will consider the introduction of legislation to ensure adequate safeguards fox investors in casino enterprises advertising for the public's savings.

Mr. Green

No, Sir. If there is fraud the criminal law already provides some safeguards. This kind of investment is on the face of it in the nature of a gamble and my right hon. Friend has not thought it appropriate to the Protection of Depositors Bill which he introduced on 21st November.

Mr. Jay

Is not the Minister aware that in recent months, quite a number of these firms have been advertising for the public to save and offering interest as high as 250 per cent. a year and that when the depositors, or whatever they should be called, come back a few weeks later they discover that the firms have disappeared? Are we really to be told that, while unit trusts and building societies are meticulously regulated, firms of this kind can do anything they like by saying that it is gambling and not investment?

Mr. Green

I recognise the difficulty posed by that supplementary question, but I repeat that on the face of it this appears to be a gamble and not an investment. It is not clear what the legislation would be expected to provide which would be of any use to people who were prepared to go in for this sort of scheme.

Mr. Walker

Is my hon. Friend aware that this is one of the worst examples of flagrant fraud seen in this country for some time? Is he aware also that in the case of six of these firms the promoters, having collected what people considered to be genuine investments, have disappeared? Will he, therefore, consider introducing legislation to compel these people to state on their advertisements that this is a gamble and not an investment?

Mr. Green

That might be a point worth considering; it might be a different point of view. I repeat, however, that the difficulty of framing legislation to cover people of this kind is formidable and one does not want to take up the time of the House unnecessarily in that sort of way.