HC Deb 02 November 1965 vol 718 cc858-60
30. Mr. Cordle

asked the Chancellor of the Exchequer whether he will issue for publication in the national Press monthly figures of the net inflow of personal savings in National Savings, Post Office and trustee savings banks, building societies and other media of institutional saving; and if he will use all media available to him to explain the uses to which these moneys are put and their effect on the country's financial stability.

The Financial Secretary to the Treasury (Mr. Niall MacDermot)

These figures are available in "Financial Statistics", published monthly by the Central Statistical Office. In addition, figures for National Savings are released each week by the National Savings Committee. My right hon. Friend continues at all appropriate opportunities to stress the importance of savings.

Mr. Cordle

Will not the Financial Secretary agree that the average member of the public has no idea of the serious implications for his standard of living inherent in the current economic position of the country? Personal savings are one voluntary way of limiting personal consumption, but most people see no connection between personal savings and the national interest. Ought not these facts to be brought to the homes of the people in language which they can easily understand?

Mr. Speaker

The hon. Gentleman must not read his question, and it should be shorter.

Mr. MacDermot

I hope that the people to whom the hon. Gentleman is referring will have read the extensive accounts of my right hon. Friend's speech on Saturday at Ayr.

Mr. William Clark

Would not the hon. and learned Gentleman agree that one of the greatest influences upon savings is confidence in the economy of the country? Would he also agree that a drop in national savings must be a reflection of that confidence?

Mr. MacDermot

I have no doubt that the improvement in the confidence which has been very marked recently will reflect itself in future in the level of national savings.

31. Mr. Edward M. Taylor

asked the Chancellor of the Exchequer what net increase or decrease took place in savings invested through the National Savings Movement in the first nine months of 1965; and what the comparable figures were for the first nine months of 1964 and 1963.

The Chancellor of the Exchequer (Mr. James Callaghan)

An increase of £95 million, £296 million and £257 million respectively.

Mr. Taylor

Would the right hon. Gentleman agree that this very serious and alarming fall in the net increase in national savings shows that the public share his lack of confidence in the First Secretary's ability to establish an effective prices and incomes policy, and if, as the Chancellor said in Hamilton, the choice is between more savings and more taxation, can we look forward to another savage and miserable Budget?

Mr. Callaghan

I hope that the hon. Gentleman will not pursue too far his efforts to create artificial rifts here in order to conceal the real rifts on his own side of the House. The short answer is that personal savings as a whole over all fields are running at much the same level as they were a year ago. Indeed, in the first quarter they were slightly down, but in the second quarter they were well up.

Mr. Iain Macleod

Would the right hon. Gentleman confirm that all forms of national savings are down on the comparable period a year ago, and can he also say, because there is, of course, an element of switching in this, how much of that he estimates is due to the amounts put into building societies, local authorities and other forms of saving?

Mr. Callaghan

Not without notice.