§ I have just a few words to say about national savings at this point. The results of the first six months of the save as you earn scheme which I announced in my last Budget are satisfactory. On contracts entered into during the first six months of the scheme with the Department for National Savings and the Trustee Savings Banks, subscriptions already received total nearly £6 million, and commitments to subscribe amount to a total of over £110 million over the next five years. Some 30 per cent. of these contracts are for saving through deductions from pay.
§ S.A.Y.E. has made a good start, although I have always thought that it should be judged less by its immediate effect than as a long-term contribution to the means of personal savings. How-ever, its yield so far has only to a small extent offset a decline in the amount invested in other forms of national savings, notably in ordinary accounts in the National Savings Bank and the ordinary departments of the Trustee Savings Banks. The savings banks are failing to attract and hold funds as they have done in the past, despite their obvious advantages notably of liquidity and accessibility.
§ In the circumstances of today it no longer makes sense to think of an immutable savings bank rate of 2½ per cent. I therefore propose to take powers in the Finance Bill to vary, by Order, the rates of interest payable on deposits in the ordinary accounts of the National Savings Bank, in the ordinary departments of the Trustee Savings Banks, and in the No. 2 Department of the Birmingham Municipal Bank.
§ A change in the rate would be a major administrative exercise. The earliest 1237 point at which it could now become operative would be in respect of interest credited for the year 1971. At this stage, therefore, I propose to do no more than take powers to vary the rates: a decision on whether to change the rates for 1971 will be taken nearer the time.
§ There is one other change in the national savings field to which I want to refer. Sir Miles Thomas, the President and Chairman of the National Savings Committee, has decided that the time has come for him to retire as Chairman. Since he succeeded Lord Mackintosh in 1965, he has led the National Savings Movement in England and Wales with devotion, vigour and distinction. I record my gratitude to him for his outstanding services. I am glad to say that he has agreed to continue for a time as President of the National Savings Movement.
§ I have been fortunate enough to secure as his successor Sir Robert Bellinger. He will take over from Sir Miles Thomas as Chairman at the National Savings Assembly at the end of May. He brings most valuable qualities to his new appointment, and I believe that he will carry with him the good wishes of every Member of the House, and our confidence that the national savings movement, under his leadership, will rise to the challenges of the 1970s as it has risen to so many other challenges over its life of more than 50 years.