HC Deb 12 May 1970 vol 801 cc1053-4
28. Mr. Fortescue

asked the Chancellor of the Exchequer what is the cost to the Exchequer of each payment made by the Paymaster-General on behalf of a Government Department.

Mr. Taverne

I would refer the hon. Member to the answer I gave on 24th February to my hon. Friend the Member for Nuneaton (Mr. Leslie Huckfield). —[Vol. 796, c. 291.1

Mr. Fortescue

Would the hon. and learned Gentleman confirm that inquiries made since then, and possibly not yet complete, make the figure nearer 2s. than the 6d. given in the answer then?

Mr. Taverne

No, that is not correct. I had seen a computation which was quite inaccurate because it did not allow for the maintenance of the Department's payroll of more than half a million public service pensioners.

Mr. Heller

In view of the excellent work which the Paymaster-General did in helping to save the jobs of the workers at Cammell Laird, is my hon. and learned Friend aware that any increases which may come from the Paymaster-General's office are acceptable so far as I am concerned?

Mr. Taverne

The Paymaster-General and his office of course work with the maximum of efficiency.

29. Mr. Fortescue

asked the Chancellor of the Exchequer whether, in view of the recent increase in the cost to the Paymaster-General's Office of such transactions, he will now arrange for Government Departments to arrange payments of salaries and pensions, and other financial transactions, through the National Giro rather than through the Paymaster-General's Office.

Mr. Taverne

There has been no significant recent increase and the unit cost is likely to decrease. Departments are already free to use the National Giro for any financial transactions where it is economical, efficient and convenient to do so.

Mr. Fortescue

Is the hon. and learned Gentleman aware that from recent Parliamentary Answers it is clear that Government Departments do not use the Giro very much? Will he go to Bootle and see the great amount of unused capacity there, and will he encourage Departments to take their business away from the Paymaster-General so that he can concentrate to the maximum on the work of helping industry, such as the hon. Member for Liverpool, Walton (Mr. Heffer) has mentioned, instead of concentrating on archaic activities?

Mr. Taverne

I agree entirely with the hon. Gentleman that use of the Giro should be encouraged. I use it myself, and I hope many Members will. When it comes to Government payments, large payments are more economically made through the Paymaster-General's Office. It is only when there are small payments that it is more efficient and economical, as in the case of the 50 million payments by the Department of Health and Social Security, for which the Giro is used.