§ 65. Mr. Wadeasked the Chancellor of the Exchequer whether the arrangements with building societies authorised by Section 445 of the Income Tax Act, 1952,
218Wten years, separately, and also the same amounts in stated values based on 1945 prices.
§ Mr. H. BrookeThe figures in reply to the first part of the Question are given below. I think that a revaluation as suggested in the second part of the Question would present a misleading picture; but if my hon. Friend wishes to make a calculation based on 1946 prices, he can do so by using the index numbers in Table 23 of the Blue Book on National Income and Expenditure, 1955.
apply under his regulations to a society which does not genuinely carry on the business of a building society, namely, that of granting loans primarily for the purpose of encouraging owner occupation.
§ Mr. H. BrookeThese arrangements are not in any way dependent on conditions as to the purposes to which loans granted by societies may be put. Their sole purpose is to avoid the excessive amount of work and inconvenience which would fall upon small investors and the Inland Revenue Department otherwise.
§ 66. Mr. Wadeasked the Chancellor of the Exchequer what steps the Registrar of Friendly Societies takes to satisfy himself that a building society, registered under and enjoying the benefits of the provisions of the Building Societies Acts, does in practice carry on the recognised business and functions of a building society in the encouragement of homeownership.
§ Mr. H. BrookeThe law does not forbid building societies to lend for purposes other than home ownership, and it is not the Registrar's duty to question any legitimate lending where the investor's 219W interests are properly safeguarded. If, however, a society acts so as to imperil its investors the Registrar of Building Societies has power, after inquiry, to forbid it to invite further capital from the public. The accounts of all building societies are examined for any sign of activity of this sort.