§ Mr. Georgeasked the Chancellor of the Exchequer in the light of recent collapses of building societies, what further measures he is considering to protect investors.
§ Mr. Denzil DaviesI imagine my hon. Friend has particularly in mind the irregularities in the Grays Building Society. The Building Societies Association announced on Friday 31st March that sufficient assurances had been received from a number of member societies to ensure that investors in the Grays Building Society will not lose their money. Arrangements to implement these assurances, which take fully into account also the interests of mortgagors, are being made with the knowledge and encouragement of the Chief Registrar of Friendly Societies. In addition, as also announced on Friday, the Chief Registrar with the approval of the Treasury has appointed Mr. Ian F. H. Davison, managing partner of Arthur Andersen & Co., as inspector to inquire into and report on the affairs of the society. The procedure for the inquiry is comparable to that under the analagous provisions of the Companies Acts and the inspector has powers to require production of books and other documents of the society and to examine on oath its officers, members, agents and servants in relation to its business. The inquiry will ensure that the authorities are fully informed about the way in which the irregularities occurred and, naturally, we shall be giving very careful consideration to the inspector's report.
§ Mr. Moonmanasked the Chancellor of the Exchequer if, in the light of the collapse of the Grays Building Society, he will bring forward legislation to provide compensation for savers and mortgage holders in such circumstances.
§ Mr. Denzil DaviesI refer my hon. Friend to the reply I have given today to my hon. Friend the Member for Walsall, South (Mr. George).