§ LORD WAKEFIELD OF KENDALMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government when it is intended to amend the law relating to moneylending and banking, in view of the need for clarification arising from modern methods of providing finance on a credit basis.]
§ THE PARLIAMENTARY SECRETARY, BOARD OF TRADE (LORD RHODES)My Lords, the Moneylenders Acts exempt from their provisions any person who is bona fide carrying on the business of banking. A recent judgment in the Court of Appeal has led to anxiety among some of the companies which rely upon that exemption. Her Majesty's Government are considering the situation and are in consultation with the Finance Houses Association about it.
§ LORD WAKEFIELD OF KENDALMy Lords, while thanking the noble Lord for that reply, may I ask whether it is not a fact that, although Parliament has conferred a number of privileges on banks 1465 and banking, Parliament has not yet defined what is the business of banking? And is it not highly desirable that this should be clone as soon as possible and the law about moneylending in general brought up to date, whether it is done by banks or anybody else. Would the noble Lord not agree that uncertainty about the legal position of banking and moneylending is undesirable and should not be allowed to continue?
§ LORD RHODESMy Lords, I came armed with references from Doctor Johnson's day until the present time about this definition of banking, but I do not think it is necessary to read them at length. May I say that I agree with the noble Lord that an investigation into this matter is necessary, and that the Government are doing it.
§ LORD WAKEFIELD OF KENDALMy Lords, I am much obliged to the noble Lord for that further statement.