PREMIUM BOND PRIZES (Hansard, 18 December 1972)

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

§ THE MINISTER OF STATE, DEPARTMENT OF HEALTH AND SOCIAL SECURITY (LORD ABERDARE)
My Lords, experience of running the Premium Savings Bond Scheme has shown that it needs a boost from time to time to stimulate investment and that an increase in the size and number of the top prizes is one of the ways of effectively stimulating sales. For this reason Her Majesty's Government have the structure of the prize draw constantly under review.

§ VISCOUNT AMORY
My Lords, may I ask my noble friend to bear in mind that the Premium Savings Bond Scheme is not the same as a national lottery or a football pool, and that huge, sensational prizes would not be in accordance with the spirit or the intention of the Premium Savings Bond Scheme?

§ LORD ABERDARE
My Lords, I am well aware that there are many different 816 views on this subject, especially the views held by my noble friend; and they will certainly be taken into account.

§ BARONESS BROOKE OF YSTRADFELLTE
My Lords, is the Minister aware that in spite of having been a founder investor I have never been fortunate in the draw; that there are thousands like me, and that we should prefer many more smaller prizes than more even bigger prizes?

§ LORD ABERDARE
My Lords, I can only express my condolences to the noble Baroness and hope that she will continue to keep trying. But I take her point, and it will certainly be borne in mind.

§ LORD ROBBINS
My Lords, is the noble Lord aware that some of us think that national lotteries for worthwhile purposes would be better than an extension of the Premium Bond Scheme?

§ LORD ABERDARE
Yes, my Lords. As the noble Lord probably knows, there is a departmental committee sitting on the question of lotteries.

§ LORD BROWN
My Lords, is there available the result of any research that would indicate which stimulates investment in these schemes more, larger prizes or a larger number of smaller prizes?

§ LORD ABERDARE
My Lords, all I know is what I have said, that the larger prizes certainly stimulate investment. I am not sure whether there is any evidence for the other alternative.

§ LORD BROWN
My Lords, with respect, if there are no results from research available, on what criteria does the Minister make the statement that larger prizes stimulate investment? I myself, and a good many other people, feel that a larger number of much smaller prizes would stimulate it far more than a smaller number of much larger prizes.

§ LORD ABERDARE
My Lords, this is just the controversy that exists, and it is up to the National Savings Committee, to whom we look for advice, to advise what they think is best.

§ LORD TAYLOR OF MANSFIELD
My Lords, will the Minister agree that with more prizes of lower value more people would participate, to the benefit of the scheme?

§ LORD ABERDARE
Again, my Lords, this is the matter that we are discussing—which is the more attractive to people, big prizes or a lot of small prizes?

§ LORD SLATER
My Lords, will the Minister agree that it is advisable for this matter to be further considered by the National Savings Committee, in view of his statement that the bigger the prize the greater the stimulus? It is quite obvious that Members of this House are coming down on the side of the noble Baroness, Lady Brooke of Ystradfellte, who asked for more prizes.

§ LORD ABERDARE
My Lords, I can assure the noble Lord that the National Savings Committee are well aware of all these views, and will take them into account. But there is no intention at the moment of increasing the prizes.

§ LORD BROWN
My Lords, will the Minister undertake to suggest to the National Savings Committee that they should avail themselves of the assistance of one of the opinion polls, to discover what is the opinion of the public on this matter?

§ LORD ABERDARE
My Lords, I shall certainly draw that suggestion to the attention of my right honourable friend.

§ LORD CONESFORD
My Lords, is my noble friend aware, when he talks about stimulating investing (I think that is what he said), that "investing" is, I believe, the word used by the promoters of the football pools in encouraging people, in their words, to "invest in the pools"?

§ LORD ABERDARE
My Lords, I am not aware of that, but I am sure, if my noble friend says that, that that is what they do.

§ BARONESS SUMMERSKILL
My Lords, may I ask the noble Lord, as representing Welsh Nonconformists, whether he approves of this form of behaviour?

§ LORD ABERDARE
My Lords, these are not my personal views that I am expressing.