HC Deb 16 December 1999 vol 341 c383
3. Mr. Peter L. Pike (Burnley)

What recent discussions he has had with the Building Societies Association regarding mutuality. [101767]

The Economic Secretary to the Treasury (Miss Melanie Johnson)

I had the pleasure of addressing the Building Societies Association annual lunch on 11 November. I have been engaged in regular correspondence with building societies, setting out the Government's position on a range of issues.

Mr. Pike

Although the measures that the Government have recently taken to protect building societies and the increasing number of people who sign motions are welcome, do my hon. Friend and the Government endorse the decision of members of the Leek United, who have clearly said no to predators and carpetbaggers? Does she agree that that shows that the Government and building societies believe that long-term advantages outweigh short-term cash in hand, and that there is a future for mutuality and building societies in the 21st century?

Miss Johnson

I thank my hon. Friend for his welcome for our moves to amend secondary legislation, and I emphasise that I share his view of the role that building societies play. We acknowledge the variety and choice that building societies bring to the savings and loans market. They enhance competition to the consumer's benefit. Smaller societies in particular can provide a regional focus and high-quality finance jobs in our regions. They often have a close understanding of their local markets, and we value their contribution to the UK economy.

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