HL Deb 18 May 1972 vol 330 cc1439-40
LORD BESWICK

My 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 they expect to receive the Report of the Committee now sitting under Sir Hilary Scott, and if, in view of the recent extreme activity in property bonds and equity linked life assurance, they will undertake to act upon any recommendations with the utmost urgency.

THE PARLIAMENTARY UNDER-SECRETARY OF STATE, DEPARTMENT OF TRADE AND INDUSTRY (THE EARL OF LIMERICK)

My Lords, Sir Hilary Scott's Committee are still taking oral evidence and are unlikely to be in a position to report much before the end of the year. I will certainly give careful and urgent consideration to any recommendations when they are received.

LORD BESWICK

My Lords, while thanking the noble Lord for that reply, may I ask whether he is aware that everyone agreed with the wisdom of Her Majesty's Government when they set up the Committee in the first place? Would he not agree that the reasonable doubts which were held at that time and which led to the setting up of the Committee have now turned into quite serious anxieties, in the present speculative fever?

THE EARL OF LIMERICK

My Lords, that was the very reason for the setting up of the Committee, and it is indeed part of our policy in examining the requirements for future insurance legislation that those matters should be taken into account. The noble Lord may possibly be referring to an article which appeared in the Observer last Sunday and which raised a number of these points. It is an article which I have already drawn to the attention of the Committee, and my information is that they were considering this matter this morning.

LORD BESWICK

My Lords, I am much obliged to the noble Lord, but is he aware that I was interested in this matter before the Observer printed their article, which does confirm a lot of these doubts. But would he also call the attention of the Chancellor of the Exchequer to the fact that the Budget provision for the remission of tax on loan interest is adding to the inflationary fire here?

THE EARL OF LIMERICK

I am indeed well aware of the noble Lord's interest in this subject and I take note of his further remarks.