§ 2.57 p.m.
§ Lord Taylor of BlackburnMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government when they intend to introduce legislation following their Green Paper Building Societies: A New Framework (Cmnd. 9316.).
§ Lord Brabazon of TaraMy Lords, the economic Secretary to the Treasury announced detailed proposals for new building society legislation in a speech earlier this month to the annual conference of the Building Societies Association. He said he hoped that the legislation would be introduced in Parliament this autumn. Copies of his speech have been placed in the Library of your Lordships' House.
§ Lord Taylor of BlackburnMy Lords, I thank the noble Lord for his reply to my Question. I am not privileged to attend the annual conference of the Building Societies Association and I look forward to reading the report which is placed in the Library. Perhaps I may ask whether this includes conveyancing and whether the Government intend allowing building societies to introduce conveyancing for their members.
§ Lord Brabazon of TaraMy Lords, my noble and learned friend the Lord Chancellor has recently reaffirmed the Government's commitment to allow solicitors employed by banks, building societies and other organisations to offer a conveyancing service. The Government are still considering how best to give effect to this.
§ Lord Stoddart of SwindonMy Lords, I wonder whether the noble Lord can say that in the legislation to be brought forward there will be protection, especially in the matter of unsecured loans, for people who actually want to borrow money. Can the noble Lord also say whether there will be protection for small societies against takeover by large societies? Will he also say whether there will be provisions in the Bill to provide for better democracy within the building society movement?
§ Lord Brabazon of TaraMy Lords, on the point of the smaller societies, my honourable friend said that he believed that it would be a pity if the existing variety of building societies was lost, and he hoped that the present variety would continue and indeed develop because a diverse movement is a healthy one. On the question of democracy in the building societies, he has outlined more or less as in the Green Paper his proposals for election to the board, etc.
§ Lord MishconMy Lords, in answer to a question directed to him by my noble friend, the noble Lord the Minister talked in terms of Government policy in regard to solicitors and building societies. Would he say quite firmly that the Government will protect the public to see that there is no conflict of interest in that connection?
§ Lord Brabazon of TaraMy Lords, it is indeed the Government's intention to provide arrangements which avoid subjecting solicitors to a conflict between the interests of their clients and those of their employer.