§ Mr. Eadieasked the Chancellor of the Exchequer if he is satisfied by the re- 822 sponse of industry to the new Save-As-You-Earn scheme; and if he will make a statement.
§ Mr. TaverneYes, Sir. A complete picture is not yet available but I am encouraged by the response so far.
§ Mr. EadieMy hon. Friend must be aware that we have been given information that in the first month 37 per cent. of the building societies were responsible for new contracts. Bearing in mind this figure, will he give an assurance to the House that industry is giving all possible encouragement to promote the Save-As-You-Earn scheme?
§ Mr. TaverneI am not in a position to give details of building society returns, but I can tell the House that 700 firms have so far agreed to run group schemes for Save-As-You-Earn through the Department for National Savings, others through the Trustee Savings Bank, and this would seem to show an encouraging response.
§ Mr. Iain MacleodDoes the Financial Secretary agree that, to a very heavy taxpayer, the yield of the S.A.Y.E. scheme can amount to over 80 per cent.? If he agrees that, will he say how much of the initial response takes the form of switching and is not a net gain?
§ Mr. TaverneOf course I am aware of this, as no doubt was the right hon. Gentleman when he welcomed the scheme. I cannot tell him how far there has been switching, but the fact that the average over-the-counter contract signed through the Department of National Savings amounts to £6–00A3;7 suggests that those applying for the contracts are not perhaps surtax payers.