HC Deb 29 November 1982 vol 33 cc12-3
12. Mr. Allan Roberts

asked the Secretary of State for Industry if he will bring forward proposals for further developing the National Girobank.

Mr. Butcher

As the National Girobank is part of the Post Office, the responsibility for its further development rests with the Post Office board. Such development is, of course, also dependent on Girobank's ability to compete effectively in the environment in which it operates. The House will no doubt have noted that the Select Committee on Industry and Trade said in its recent report on the Post Office: We are pleased to learn of the continued expansion in the activities of the National Girobank".

Mr. Roberts

Will the Minister use his influence with the Post Office board to ensure that future development in regional policy does not take jobs away from Merseyside? Will he take action to set up Girobank as a truly national bank by amalgamating it with the National Savings Bank? Will the hon. Gentleman intervene with the Post Office board to stop the practice of giving free banking to high balance customers, while making excessive charges to low balance customers?

Mr. Butcher

The hon. Gentleman's last two questions are, of course, matters for the Post Office board. I am informed that the National Girobank has given assurances to employees on Merseyside that there will be no compulsory redundancies arising from its move, as a result of a recent report, towards greater efficiency. The move towards regionalisation has benefited Merseyside, where a regional office has been set up.

Mr. Eggar

Will my hon. Friend confirm that there will be no form of subsidy from the Government to the National Girobank? Will my hon. Friend also confirm that when setting the external financing limit for the Post Office, no account will be taken of any possible losses that the National Girobank may make?

Mr. Butcher

I give my hon. Friend an assurance on his first point and an assertion that we shall pursue his second point. The National Girobank, as a bank, must compete with other banks on its merits in providing services to its customers.