HC Deb 04 March 1976 vol 906 cc1509-10
1. Mr. Wrigglesworth

asked the Chancellor of the Exchequer when he expects to publish the White Paper outlining the Govenment's new policy towards banking supervision.

The Paymaster-General (Mr. Edmund Dell)

We hope to publish a White Paper before Easter.

Mr. Wrigglesworth

Is my right hon. Friend aware that many Labour Members welcome the Government's proposition to improve the supervision of the banking system? Who will be responsible for that supervision? Many of my hon. Friends believe that the Bank of England cannot carry on this function of supervision at the same time as being the spokesman for the City. Many of us are concerned about the way in which the Bank of England is not accountable to this House for the functions that it performs.

Mr. Dell

I note what my hon. Friend says. I welcome his acceptance of the Government's policy in this area. My hon. Friend should wait for the White Paper, which will set out the method by which surveillance will be exercised. I assure him that I have taken note of his views.

Mr. Watkinson

Will my right hon. Friend agree that the "Barber boom" in the early 1970s got out of control because of the money-creating potential of the banking sector? Will he take measures to ensure that in the upturn the banking sector is controlled by this Labour Administration?

Mr. Dell

That is a piece of history of which the Government are well aware. I hope that we shall satisfy my hon. Friend in the outcome of events.