HC Deb 19 July 1979 vol 970 cc1979-80
15. Mr. Costain

asked the Chancellor of the Exchequer, what steps he is taking to ensure that the £25 and £50 premium bond prizes are retained.

Mr. Peter Rees

No decision has yet been made about the retention of the £25 and £50 prizes in the prize structure to apply from 1 January 1980. We hope to make an announcement before the end of September.

Mr. Costain

Does the Minister not appreciate that this is an innocent form of gambling, which gives a lot of pleasure to elderly people who take the view that they would rather have a chance of winning £25 than the more remote chance of winning £25,000? Are not the Government committed, when they sell these bonds, to honour their pledge?

Mr. Rees

I hope that my hon. Friend will not take my answer as reflecting on the innocence or otherwise of gambling or of premium bonds. The temporary suspension of the smaller range of prizes is entirely due to the backlog caused by the industrial action that occurred earlier in the year.

Mr. Latham

Would it not be possible, as a means of getting rid of the backlog caused by a strike under the previous Government, to have more than one draw a month, instead of reducing the prizes?

Mr. Rees

I note my hon. Friend's remarks, but I do not believe that that would speed up the clearance of the backlog. However, we hope to resume these prizes in due course, and an announcement will be made before the end of September.