§ Mr. E. Smith
asked the Financial Secretary to the Treasury whether he can state the total profits of building societies in Great Britain for the years 1930, 1934 and 1938; and whether he can now take steps to reduce the 4½per cent. that is charged by building societies?
§ Captain Crookshank
The estimated profits of building societies in Great Britain (in the sense of the interest paid on shares plus the additions to profit and reserve) were as follow:
— 1930. 1934 1938. £ £ £ Interest on shares. 12,852,000 15,592,000 17,981,000 Additions to profit and reserve. 1,914,000 3,164,000 3,537,000 £ 14,766,000 18,756,000 21,518,000
As regards the latter part of the question, it will be appreciated that the rate of interest charged by building societies is a matter for determination by the societies themselves.