§ 48. Mr. Rankinasked the Chancellor of the Exchequer if he will increase the rate of interest payable to investors in the National Savings Bank to 3½ per cent.
§ Mr. TaverneI have nothing to add to the reply given by my right hon. Friend the then Financial Secretary to my hon. Friend the Member for West Ham, North (Mr. Arthur Lewis) on 23rd July last.
§ Mr. RankinThat is not a very happy Answer. Would my hon. Friend agree that successive Governments over the years have drawn from the small saver something like £5,000 million? Does he not feel that they ought to receive the same encouragement which is given to the large investor at 81 per cent.? Will he not think again about the answer he has given to see whether he can give the small saver the encouragement which he deserves?
§ Mr. TaverneI agree with my hon. Friend that the small saver should be given every encouragement. These particular accounts are treated rather differently. They are often treated as current accounts and there are other different forms of national savings available which give a much higher rate of interest. The Save-As-You-Earn scheme is particularly directed at the small saver and should give him a fair return on his investments.
§ Mr. Stratton MillsHow long has the present rate of interest of 2½ per cent. been in operation and what was the Bank Rate at the time of its introduction?
§ Mr. TaverneI should require notice of that question.
§ Mr. RankinIn view of the discouraging and unsatisfactory nature of that answer, I beg leave to raise this matter on the Adjournment at the earliest possible moment.