§ Mr. Squireasked the Chancellor of the Exchequer when he expects to introduce an investors' protection scheme for building societies.
§ Mr. LawsonI take it that my hon. Friend has in mind a statutory scheme; I confirm that the introduction of such a scheme has been noted as a matter to be considered when the opportunity next arises for building societies legislation.
I should add that section 43 of the Building Societies Act provides for societies to enter into voluntary arrangements for the purposes of making funds available to meet losses incurred by investors. It was under these arrangements that the rescue operation was mounted in the case of the Grays Building Society.
While there is no permanent scheme under section 43, and while the Building Societies Association has never formally committed itself to guaranteeing that no investors in a building society would ever suffer loss, I understand that the association is confident that in the event of difficulties arising in a particular society, there would be a similar constructive response from other societies in the future to that which has been forthcoming in the past.