HC Deb 22 February 1966 vol 725 cc214-6
15. William Hamilton

asked the Chancellor of the Exchequer if he will now consider establishing a State unit trust.

16 Mr. Duffy

asked the Chancellor of the Exchequer if he will give priority to the creation of State unit trust.

29. Mrs. Shirley Williams

asked the Chancellor of the Exchequer if he will authorise the creation of a State-owned unit trust; and if he will make a statement.

48. Mr. Box

asked the Chancellor of the Exchequer what consultations he has had regarding the formation of a State unit trust.

Mr. MacDermot

My right hon. Friend has taken note of these suggestions by hon. Members. He continues to keep this matter under review, but has not had any formal consultations outside Government circles about it. Naturally he would study with the care they deserve any representations which might be made to him.

Mr. Hamilton

Is my hon. and learned Friend aware that he has been taking note of this question and keeping it under constant review for a very long time? Does not he recognise that this would be very attractive for the kind of small investor mentioned in an earlier Question? Can he say what are the insuperable difficulties that are holding the Government back from action in this matter?

Mr. MacDermot

In his Budget speech last year my right hon. Friend said that the idea had many attractions but that he did not propose to embark upon it, as the Post Office would be busy with its new investment account, which he regarded as having first priority. There are difficulties about the scheme, although I do not suggest that they are insuperable. My right hon. Friend will need to consider them further. Some of them arise from the high cost of running a trust with a large number of small unit holdings and the very considerable administrative load that would be imposed on the Post Office.

Mr. Duffy

Is my hon. and learned Friend aware that there is now great support for the idea, notwithstanding the difficulties, some of which he has touched upon and many others that we must recognise? Might not this be a device for tapping new layers of potential savers, which cannot be tapped by any of the existing institutions?

Mr. MacDermot

My right hon. Friend is aware of the support given by the N.E.D.C. to this proposal and will be glad to consider any representations that may be made on the subject.

Mr. Box

Is the hon. and learned Gentleman aware that many people feel that a State unit trust could be used as a device to spread Government control of industry? When the Chancellor is considering this question further, will the hon. and learned Gentleman advise him to bear in mind the possibility of forming a unit trust of unit trusts?

Mr. MacDermot

That is an example of the way in which hon. Members opposite are hoist with the petard of their own silly propaganda.

Mr. Gresham Cooke

As such a State unit trust would be based predominantly on British industrial securities, is it not pleasant to hear the confidence expressed by hon. Members opposite in British industry? Further, does it not highlight the fears of inflation that they have for the future?

Mr. MacDermot

I would remind the hon. Member that for the most part my hon. Friends represent those who work in British industry.