National Savings (Hansard, 13 June 1974)

§ 18. Mr. Pardoe
asked the Chancellor of the Exchequer if he will make a statement about the Government's policy towards the indexation of national savings to protect savers against inflation.

§ 24. Sir David Renton
asked the Chancellor of the Exchequer if he has yet reached a decision on action to implement the recommendations of the Page Report on National Savings.

§ Mr. Dell
We are considering the report of the Page Committee, including its recommendation for the experimental issue of an index-linked bond for the small saver. We will announce our decisions as soon as we can.

§ Mr. Pardoe
I thank the Paymaster-General for that slightly encouraging reply. Referring back to the previous Question, is the right hon. Gentleman aware that the most ill-advised invest- 1818 ment anyone in this country could make is not in property companies but in the Government? Will he admit that the Government are actively encouraging people to invest their money at a loss? Will he take immediate steps either to ensure that small savers get at least a positive return on their money in national savings, or to stop all advertising of this fraudulent practice?

§ Mr. Dell
The hon. Gentleman will know that we have improved the terms for national savings securities. The improved terms recently came into operation and we shall see how attractive they are to the public. Index linking is a question which we have under serious consideration. The House must realise that there are substantial difficulties. If index linking can be achieved there will be advantages, especially for the small savers. It is for that reason that we have the matter under serious consideration. I cannot give any promises or make any statement now.

§ Sir David Renton
Is any significance to be attached to the fact that this afternoon the Page Report is not available in the Vote Office? Will the right hon. Gentleman draw the attention of the Chancellor of the Exchequer regarding savings to the need for both a policy and an example in fighting inflation and improving investment?

§ Mr. Dell
I did not know that the Page Report was not available in the Vote Office. I am sure that it should be. It may be that during the time of the previous Government the people in the Vote Office became tired over a period of 12 months of waiting for a decision from them on what to do about the report. As for creating an example, my right hon. Friend, the Chancellor has given an example by substantially improving the terms of national savings securities.