HC Deb 27 February 1975 vol 887 cc677-8
2. Mr. Golding

asked the Chancellor of the Exchequer what proportion of the Government banking is conducted through Giro.

Mr. Robert Sheldon

I regret that the information asked for by my hon. Friend is not readily available centrally.

Mr. Golding

Is my hon. Friend aware that many of us are concerned that the proportion is not great enough in view of Labour's "Programme for Britain" of 1963, which pledged that the Giro system would be used as extensively as possible by Government Departments and by nationalised industries? Will my hon. Friend tell the Paymaster-General that it is ridiculous that there should be duplicate banking facilities going through the computers of the Paymaster-General's office, and that Giro should be used in the public service?

Mr. Sheldon

I support the contention of my hon. Friend that there should be a much greater use of Giro. I echo what my hon. Friend says in that respect. I would point out that the Treasury has recently reminded all Departments to consider making greater use of Giro and to offer it to the public as a way of making payments.

Sir John Hall

Does the Minister not agree that it is rather extraordinary that the Government should not know what proportion of their banking is conducted through the Giro system? Do the Government not know how they conduct their banking?

Mr. Sheldon

These are matters for the individual Departments. The task of the Treasury is to make recommendations regarding the most useful methods, and it has done so in this respect.

Mr. Spriggs

Is my hon. Friend aware that the housing departments and the treasury departments of many local authorities are having to deal with huge sums of arrears because people are not using the Giro system to make regular payments of rents and rates? Will he give his attention to this matter and advise local authorities about the value of Giro?

Mr. Sheldon

I am more than happy to support what my hon. Friend says. I am sure that his question will draw the attention of local authorities to the need to make greater use of the Giro system.

Sir G. Howe

Is it not the case that Giro is still losing money and costing a substantial amount of public money? In those circumstances, would it not be sensible, so long as the institution is there, for the Government to undertake aggressive marketing policies for those Departments under their control, and at least conduct the kind of marketing survey that my hon. Friend the Member for Wycombe (Sir J. Hall) has suggested? What are the Government doing to diminish the loss?

Mr. Sheldon

My right hon. Friend the Secretary of State for Industry is considering these and other matters and, I am sure, will be informing the House in due course.