Savings (Hansard, 3 August 1965)

§ 4. Mr. Grant
asked the Chancellor of the Exchequer what steps he is taking to improve the general level of savings in the country.

§ The Chancellor of the Exchequer (Mr. James Callaghan)
The general level of savings remains high. I am always considering new measures to increase it, and for this reason I announced a new type of Post Office investment account with a higher rate of interest in my Budget statement.

§ Mr. Grant
Was not that a rather complacent reply? Is the Chancellor aware that in the figures published yesterday, National Savings showed a net deficit over the period this year equivalent to that of last year, of about £85 million? When this is taken with the falling-off of private investment, referred to by the Leader of the Opposition yesterday, and dodged by the Chancellor, is not this an indication of a total loss of confidence in the Government's financial policy, and is not the best way to restore that confidence for the Government to resign?

§ Mr. Callaghan
I am sure that that will make a good speech in the constituencies, but I am dealing with the Question on the Order Paper. The general level of savings in the country remains high. Because of competition from other forms of savings, the level of National Savings has, unfortunately, not proved to be as high as I would certainly like.

§ Dame Irene Ward
Why?

§ Mr. Callaghan
Because the rates of interest being offered by other institutions are higher. That is the reason. I repeat my statement, that the general level remains high.

§ Mr. Barnett
Despite the party political points made by the hon. Gentleman opposite, would not my right hon. Friend agree that the increase in the level of National Savings is of urgent and vital importance, and would he consider appointing a super-salesman to sell savings throughout the country?

§ Mr. Callaghan
I was very glad indeed to ask and to have Sir Miles Thomas accept my invitation to be Chairman of the National Savings Committee. I know of few salesmen who are better than he at this particular job.

§ Mr. William Clark
The Chancellor is surely being less than fair to my hon. Friend the Member for Harrow, Central (Mr. Grant), who asked this Question. This is not a constituency point at all. It is a matter of national importance. Would the right hon. Gentleman now explain why today he says that there are so many competing markets for savings? How many new ones are there which were not available last year? Why is it that building society savings, unit trust savings, National Savings and investment trust savings, are all down? Surely, as my hon. Friend says, there is a lack of confidence in the Government, because people are inclined to wonder if it is worth saving money?

Mr. Speaker
Order. The question of whether or no there is a lack of confidence in the Government must be a question of opinion and for that reason it is out of order. It was in the original supplementary question, and in the hon. Gentleman's supplementary question now. Let us get on.

§ Mr. Callaghan
The proportion of personal disposable income—which is the phrase used—saved is 7.9 per cent. in the first quarter of 1965. If the hon. Gentleman would stop making party points and help savings we would all get on a lot better.

Mr. Speaker
Order. There is quite a lot of noise going on which is quite irrelevant. I hope that it will not continue.

§ Mr. Grant
In view of the totally unsatisfactory nature of the Chancellor's reply, I beg to give notice that I propose to raise the matter on another occasion.