HC Deb 19 March 1969 vol 780 cc471-3
7. Mr. Kenneth Baker

asked the President of the Board of Trade whether, arising out of his examination of the full accounts of the banks, he proposes to withdraw the exemptions they enjoy as to the disclosure of their full reserves.

17. Mr. Lipton

asked the President of the Board of Trade whether he has completed his examination of the full accounts of banking and discount companies; and whether he will now require full disclosure of reserves and profit and loss accounts.

71. Mr. Barnett

asked the President of the Board of Trade if he will use his powers to ensure that banks should now publish their accounts.

Mr. Crosland

My examination of the full accounts of the banks has not yet reached the point at which I can decide whether or not to continue the present exemptions.

Mr. Baker

This exercise has taken a rather long time. As this year the joint stock banks produced profit increases all within 1 or 2 per cent. of each other, it strains the credulity of the investor, and, as the banks themselves favour fuller disclosure, why cannot the right hon. Gentleman accept the proposal made by the National Board for Prices and Incomes?

Mr. Crosland

I am conscious of all the arguments that the hon. Gentleman advances, but in an Answer I gave about 14 months ago I gave a pledge to the banks that I would examine their full accounts over a period before reaching a decision. I now have the full accounts of the banks for 1967, and hope to complete my examination of those accounts in the next few weeks. I have the accounts of some banks for 1968 and hope to complete that examination shortly afterwards. As soon as possible thereafter I hope to reach a decision.

Mr. Lipton

With the inadequate cooperation that the Government are getting from our banking system, is it not time to ensure that these annual accounts are no longer utterly incomplete and positively misleading? When will my right hon. Friend get tough and let the people know the truth about our banks?

Mr. Crosland

I take the points which my hon. Friend mentions. I am strongly in favour, wherever possible, of letting people know the truth. This is an extremely complex subject. I must have time to examine the banks' accounts properly. As soon as possible after that I shall come to a view.

Sir K. Joseph

I would have hoped that the right hon. Gentleman would have taken the opportunity to tell the hon. Member for Brixton (Mr. Lipton) that this Government are getting much more support from the banks than they deserve. Will the right hon. Gentleman take note that a number of assurances given by him and by the Minister of State about timing have proved to be a little optimistic? I am thinking particularly of the decision on the report on cellulosic fibres, among others. Would the right hon. Gentleman care to commit himself to any time by which he thinks he will have made a decision?

Mr. Crosland

I would not accept the right hon. Gentleman's opening remarks on the distribution of blame for any friction that may or may not have occurred between the Government and the banking system. On the substance of the point the right hon. Gentleman raises, I would prefer not to commit myself to a date, but I am very much aware of the strong feelings that are held in parts at any rate of both sides of the House on this question and I certainly do not intend to allow this question to drag on indefinitely.

Mr. Barnett

Why need my right hon. Friend wait for the 1968 accounts? For the purpose of his exercise, are not the previous year's accounts sufficient, and will he agree that the old arguments against publishing the accounts no longer apply? Second, in view of the recent Government Measures which have helped to put substantially more money in the pockets of the banks, is it not right that we should at least know what that amount of money is?

Mr. Crosland

As to whether an examination of the 1968 accounts will or will not be necessary, I prefer to wait to see what the results are of our examination of the 1967 accounts. It may be possible to come to a view on the basis of that one year alone. As to the more general questions which my hon. Friend raises, I am well aware of the view which he holds on the matter, and I am not out of sympathy with it.