HL Deb 21 January 1971 vol 314 cc585-7

3.13 p.m.

LORD JANNER

My Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether no issues of National Savings Certificates are on sale other than the new decimal issue of which a maximum holding of £500 is permitted; and what steps they will take to enable people to invest more than £500 in National Savings Certificates.]

THE LORD PRIVY SEAL (EARL JELLICOE)

My Lords the decimal issue of National Savings Certificates is the only issue at present on sale. It is quite exceptional for more than one issue of certificates to be on sale at the same time. A maximum of £500 of the current issue may be held in addition to existing holdings of earlier issues which have separate maximum permitted limits. The decimal issue has been on sale for less than four months and the amount of money so far invested has been very satisfactory. The question of raising the limit is kept under continuous review.

LORD JANNER

My Lords, may I ask the noble Earl whether he thinks that it would be of advantage to National Savings in general, and to individuals who want to help the State and are quite prepared to invest their monies, to reconsider the maximum permitted limit so that a more substantial amount can be held by people who want to invest more than the £500?

EARL. JELLICOE

My Lords, of course I take the noble Lord's point, but I should like to make it quite clear that the low initial limit is intended to prevent widespread switching from other forms of Government security. I think this is the 13th issue. As the noble Lord may know, the limits for the 12th issue have been raised, and I can assure him that in the consideration which my right honourable friend the Chancellor of the Exchequer is at present giving to measures aimed at bringing about a genuine increase in total savings, the possibility of increasing the limit on holdings of certificates will most certainly be borne in mind.

LORD JANNER

I am much obliged to the noble Earl.

VISCOUNT ADDISON

My Lords, can the noble Earl say whether the Government are able to consider offering slightly more generous terms to try to attract more investors to this type of saving?

EARL JELLICOE

My Lords, this is, of course, a very generous Government, as the noble Viscount is fully aware. I should like to make two points to him in reply, and I think both are not unimportant. The first is that candidly I do not think that the present terms are ungenerous. Given the fact that these certificates are not subject to income tax and surtax, the yield on them amounts to 9.36 per cent. in the pound, which is not an unsubstantial yield. The second point I should like to make is that the sales of this decimal issue have amounted to over £125 million in the 15 weeks since they have been on sale, and that compares with a much lower sum of £53 million for the equivalent period for the previous issue.

VISCOUNT ADDISON

My Lords, I am grateful to the noble Earl and thank him for his reply. Is he aware that I did not say that the terms were ungenerous? I inquired whether the Government might be able to offer a little more generous terms.

EARL JELLICOE

My Lords, I was indeed aware of that.

LORD CAMOYS

My Lords, may I ask the noble Earl a question? Is it true that under decimalisation they are going to have 10½ Apostles? Shall I repeat it? I worked out in the middle of the night that there will be 10½ Apostles.