HC Deb 06 December 1983 vol 50 cc92-3W
Mr. Michael Forsyth

asked the Chancellor of the Exchequer why he will not consider, when a suitable legislative opportunity arises, amending the Bank Notes (Scotland) Act 1845, to (a) raise the limit on the fiduciary issues of Scottish bank notes to a level commensurate with the devaluation of the currency since 1845, (b) allow the Trustee Savings Bank to issue its own bank notes on a comparable basis to the existing three Scottish banks, and (c) give the Treasury powers to grant a similar right to any new banks that might be established in the future.

Mr. Ian Stewart

[pursuant to his reply, 29 November 1983, c. 464]: I understand the Scottish banks do not seek to extend their privilege. Moreover, the proposals are not in the public interest, since they would deny the Government their return on the note issue, and increase the cost of their borrowing.

Mr. Michael Forsyth

asked the Chancellor of the Exchequer if he will consult the Trustee Savings Bank in Scotland to ascertain its interest in being permitted to issue bank notes.

Mr. Ian Stewart

[pursuant to his reply, 29 November 1983, c. 464]: The Trustee Savings Bank has been consulted about all elements of the TSB group's proposed restructuring. Neither the TSB central board nor TSB Scotland has proposed during these discussions that TSB Scotland might issue bank notes.

Mr. Michael Forsyth

asked the Chancellor of the Exchequer if he will list the Scottish banks certified by the Commissioners under the Bank Notes (Scotland) Act 1845 and the amount of bank notes certified as issued under section 1 of the Act.

Date of Merger Banks in Merger Authorised Note Issue £
Clydesdale Bank Clydesdale Bank 274,321 498,773
1950 North of Scotland Bank 224,452
Bank of Scotland Bank of Scotland 396,852 851,198
1954 Union Bank of Scotland 454,346
Commercial Bank of Scotland National Commercial Bank of Scotland 374,880 671,904
1958 National Bank of Scotland 297,024
Royal Bank of Scotland Royal Bank of Scotland 216,451 888,355
1969 National Commercial Bank of Scotland 671,904
Bank of Scotland Bank of Scotland 851,198 1,289,222
1969 British Linen Bank 438,024

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