HC Deb 07 May 1968 vol 764 cc42-3W
36. Mr. John Fraser

asked the Minister of Housing and Local Government if he will call a conference with the building societies to discuss interest rates, liquidity ratios and working margins.

Mr. Greenwood

I keep in touch with the Building Societies' Association continuously. Liquidity ratios and working margins were fully investigated by the Prices and Incomes Board in 1966, and there is no need for a special conference.

47. Mr. Murray

asked the Minister of Housing and Local Government if, in view of the Government's prices and incomes policy, he will take steps to freeze building society interest rates at 7⅛ per cent.

Mr. Greenwood

Building societies must pay interest on investments made with them at a rate which will attract sufficient funds. If they pay more for the money lent to them they cannot avoid charging more for the loans they make. If building society rates were frozen there would be a mortgage famine.