§ Mr. Budgenasked the Chancellor of the Exchequer if he will make a statement about the Government's proposals for new building society legislation.
§ Mr. LawsonI have today laid before Parliament a Green Paper "Building Societies: A New Framework", Cmnd. 9316, setting out proposals which could form the basis of new legislation in this Parliament.
The proposals maintain the primary role of building societies as safe homes for people's savings and as 442W providers of funds for owner-occupation. But they would also enable the societies to play a fuller part in the provision of housing and other services, thus improving competition in retail financial services. The Green Paper includes proposals on the constitution of building societies, for strengthening the prudential framework within which they operate and the supervisory functions of the Chief Registrar of Friendly Societies, and for ending the exemption from restrictive trade practices legislation of the societies' interest rate cartel.
Comments are invited on this Green Paper and should be sent to the Treasury by 15 October 1984.