HC Deb 18 January 1971 vol 809 cc502-3
19. Mr. Barnett

asked the Secretary of State for Trade and Industry what consideration he has given to improving competition in banking; and if he will make a statement.

Mr. John Davies

As my right hon. Friend the Chancellor of the Exchequer said on 15th December, the matter will be kept under review.

Mr. Barnett

Is not the Government policy of promoting maximum competition as the solution to all our problems clearly seen to be so much humbug when they refuse to act when there is a clear abuse of monopoly power by the clearing banks? Or is it that they see these clearing banks as lame ducks who cannot stand on their own two feet?

Mr. Davies

The hon. Gentleman is aware—none better—of the intricacies of this problem. The apparent simplicity of his supplementary question conceals extremely difficult matters. The truth is that the relationship with the banks who operate within the framework of this cartel is a very embracing one and covers many items other than the simple question of customer relationship.