HC Deb 14 June 1971 vol 819 c7
6. Dr. Gilbert

asked the Secretary of State for Trade and Industry if, in the light of the Bank of England's new proposals to allow the clearing banks to compete for deposits, he will now refer the other cartel arrangements of the banking industry to the Monopolies Commission.

Mr. John Davies

I propose to await the response of the Clearing Banks to the Bank of England's paper "Competition and Credit Control" before deciding whether to adopt the hon. Member's suggestion.

Dr. Gilbert

I am grateful to the right hon. Gentleman for that answer. Does he accept that in the light of the proposals of the Bank of England paper there should now be no obstacle to the banks' relinquishing their collusive arrangements in other fields?

Mr. Davies

That will no doubt be a matter raised by the banks themselves in response to the paper.

Mr. Douglas

Would the right hon. Gentleman care to comment on the difficulties of the Scottish joint stock banks in view of the Bank of England statement, in that their lines of credit might be restricted because of the Bank of England's discussion document?

Mr. Davies

I take that point into consideration, but I think that it is more a point for my right hon. Friend the Chancellor of the Exchequer.