HC Deb 22 November 1976 vol 919 cc1854-5
4. Mr. Tim Renton

asked the Secretary of State for Trade when he expects to announce the terms of reference and the membership of the joint Department of Trade and Bank of England body reviewing the role and function of financial institutions in the United Kingdom.

Mr. Dell

Within the next few weeks.

Mr. Renton

Is the real purpose of this body simply to muzzle for the time being demands of the left wing for the nationalisation of the clearing banks? If the body is to serve a useful purpose, will the Secretary of State ensure that those serving on it are drawn not just from the kitchen cabinet cronies of the right hon. Member for Huyton (Sir H. Wilson) but from people who have a lifetime of interest in the matter on which the body is reporting?

Mr. Dell

I suspect from the nature of the supplementary question that the hon. Gentleman is confused. We are not talking about the committee to be established under my right hon. Friend the Member for Huyton. We are talking about a joint review body established between the Bank of England and my Department to improve supervision of the securities market. That is a valuable purpose which I am sure the body will effectively carry out.

Mr. Wrigglesworth

Can my right hon. Friend give the House an assurance that the decision to establish this body does not pre-empt any future decision or mean that the Government are opposed to the establishment of an independent body to supervise the securities market—a body which would be answerable to the House through Ministers? Will he tell the House what the relationship between this body and the Take-Over Panel will be?

Mr. Dell

The Take-Over Panel will no doubt consult this body when matters relating to it and matters affecting the securities market arise. It was made clear when the existence of this body was announced that it would not pre-empt the considerations of the committee of my right hon. Friend the Member for Huyton. Nor does it pre-empt any decision that a Government might take or that that committee might recommend regarding a different way of supervising the securities market. Nothing is pre-empted here, but in the meantime it seemed to the Governor of the Bank of England and myself that a body such as this one should be set up because in the short term, too, there is a valuable job to be done and it might be that my right hon. Friend's committee would be persuaded that a body of this sort—perhaps developed in some way—was itself sufficient for the purpose.