HC Deb 15 July 1971 vol 821 c146W
Mr. David Clark

asked the Chancellor of the Exchequer whether building societies in the United Kingdom would be permitted to lend money in other member countries of the European Economic Community if Great Britain were to enter.

Mr. Higgins

The Building Societies Act, 1962, states that one of the purposes of a society established under the Act is the making of advances to members upon security by way of mortgage of freehold or leasehold estate, or its equivalent in Scotland. It has been generally accepted that this excludes lending on security outside the United Kingdom.

Mr. David Clark

asked the Chancellor of the Exchequer what estimate he has made of the effect of British entry to the European Economic Community on interest rates for house purchasers in the United Kingdom ; and if he will make a statement.

Mr. Higgins

Interest rates for house purchasers will continue to depend on the general level of interest rates.

Mr. David Clark

asked the Chancellor of the Exchequer what estimate he has Britain's entry to the European Economic Community will have upon the legislation governing building societies ; and what modifications to such legislation will be necessary.

Mr. Higgins

It is anticipated that little, if any, amendment to building society legislation will be necessary when Britain enters the European Economic Community.