HC Deb 24 March 1983 vol 39 cc999-1000
1. Mr. Brotherton

asked the Chancellor of the Exchequer if he will introduce measures to control the use of credit cards.

The Economic Secretary to the Treasury (Mr. Jock Bruce-Gardyne)

No.

Mr. Brotherton

Is my hon. Friend aware of the plethora of plastic that dominates the country's economy? Does he not agree that it would be a good idea if a small taxation charge were levied on outstanding credit card debts every month? It would be a way of raising revenue and reducing the amount of credit floating round the country.

Mr. Bruce-Gardyne

I assure my hon. Friend that the Government are always grateful for suggestions to fortify the Revenue. Unfortunately, a tax on credit card borrowing would be rather difficult to justify or to administer if no such tax were charged on overdrafts, hire purchase agreements, budget accounts or other forms of consumer credit. The likely outcome of such a tax on one form of credit, unfortunately, would be to shift the business to another form of credit.

Mr. Skinner

Is not the Minister in a bit of a predicament when he talks about controlling the use of credit cards and introducing a tax element, particularly as the Government in the past few months, prodded by the Prime Minister, have allowed a wide credit card system, to the tune of $600 million, to be used by Argentina? Instead of putting a tax on the credit card system, the Government have suggested that the banks should get tax relief on the debts that have been incurred from the countries whose loans are being rescheduled.

Mr. Bruce-Gardyne

There is later on the Order Paper a question that is more germane to the point that the hon. Gentleman is trying to raise. Perhaps it will he better to discuss it then.

Mr. Nelson

Is my hon. Friend aware that about 30 million cheque and guarantee cards are circulating in this country? In view of the frightening and growing incidence of the fraudulent use of credit cards, is my hon. Friend satisfied that the scrutiny and control exercised by the Government, the police, the clearing banks and primarily the credit card issuers are satisfactory?

Mr. Bruce-Gardyne

The answer to my hon. Friend's question is basically no. There is a serious problem of fraud. However, that is a matter for the banks and the credit card companies. The companies are making determined efforts to combat fraud and are continually exploring new means of doing that. Responsibility, in the first instance, must rest with them.