§ Mr. Heddleasked the Chancellor of the Exchequer if, following the White Paper, New Cross building society, Cmnd. 9033, he will now make a statement on the transfer of engagements to the Woolwich Equitable building society.
§ Mr. Ian StewartThe transfer of engagements of the New Cross building society to the Woolwich Equitable building society was completed on 12 March 1984.
The proposal that the transfer should take place was put to the members of the New Cross at the annual general meeting on 1 March and was carried by an overwhelming majority of the 12,089 votes cast either in person or by proxy: 12,051 were in favour.
At a statutory hearing on 9 March, held before an assistant registrar of friendly societies to consider the application of the societies that the transfer should be confirmed, the board of the New Cross sought to delay the transfer on the grounds of a dispute with the Woolwich about compensation for certain managers of the New Cross. The assistant registrar ruled that the dispute was a matter for the courts and that it was overwhelmingly in the best interests of the New Cross members that the transfer should be completed as quickly as possible. The transfer was therefore confirmed.
The investing members of the New Cross gained from its transfer the security of becoming investing members of the Woolwich and recovered the ability to withdraw their investments if they wished. Borrowing members are in no worse a position and, in some respects, may be better off. The relative reserve ratios of the New Cross and Woolwich meant that the transfer slightly reduced the ratio for the Woolwich. But the change was not such as to prejudice the interests of Woolwich members.
This transfer of engagements placed a significant additional burden on the board and some of the 481W management of the Woolwich over the last few months. Their action to help the investors in New Cross was in the best traditions of the building society movement.