HC Deb 18 January 1982 vol 16 c77W
Mr. Squire

asked the Chancellor of the Exchequer, pursuant to the reply to the hon. Member for Hornchurch on 1 June, Official Report, c. 263, in view of the comments of the chairman of the Building Societies Association, that the association is looking to give only 75 per cent. protection cover for investors rather than 100 per cent. as at present, if he will review Her Majesty's Government's policy on an investors' protection scheme for building societies.

Mr. Bruce-Gardyne

I understand that, whilst the chairman of the Building Societies Association has said that the association is considering further the possibility of a permanent voluntary scheme for investors' proection under section 43 of the Building Societies Act 1962 to replace the assurance referred to in my right hon. Friend's reply to the hon. Member on 11 June, the chairman has not mentioned any precise lower figure for the percentage.

The Government will consider any proposals which the association may put forward. But in the meantime the earlier assurance stands.

Mr. Squire

asked the Chancellor of the Exchequer how many building societies have published annual accounts during the course of the current year which have revealed operating losses.

Mr. Bruce-Gardyne

Two building societies have published accounts during the course of the current year which have revealed a deficit on revenue and appropriation account.

Mr. Squire

asked the Chancellor of the Exchequer how many building societies prepare annual accounts in which losses on investments are recorded below the line; and whether, for the purposes of any returns made to him, he is satisfied with the accuracy of the financial position of the society thereby presented.

Mr. Bruce-Gardyne

The latest available published accounts of building societies with assets in excess of £25 million representing together 98 per cent. of the assets of all building societies, show that for the year to which the accounts relate three societies recorded losses on investments below the line—that is to say, after striking the balance of "surplus". For the purposes of the annual return which is required to be made to the Chief Registrar under section 88 of the Building Societies Act 1962, deficits on realisation of investments are required to be disclosed against a heading prescribed in specific terms for the purpose as part of an analysis of expenditure, The Chief Registrar is satisfied that this requirement is appropriate in relation to the presentation of the financial position of societies for the purposes of the annual return.