§ Mr. BeithTo ask the Chancellor of the Exchequer (I) if he will make a statement on the role of the Building Societies Commission on the proposed merger of the Guardian building society and the Cheltenham and Gloucester building society;
(2) if he will take steps to enable the Building Societies Commission to ensure that members of the Guardian and Cheltenham and Gloucester building societies are provided with statements of the case for and against the merger of those societies, and are given sufficient time to reach a considered decision.
§ Mr. RyderThe Building Societies Commission has two statutory functions placed upon it under the provisions of sections 93 to 96 and schedule 16 (mergers) of the Building Societies Act 1986. First, it has to approve the contents of the statement required to be sent to all members under schedule 16 to the Act and, second, if the members approve the requisite resolutions, to confirm the merger. The commission has approved the statutory statements issued by the societies in connection with the proposed merger between the Guardian building society and the Cheltenham and Gloucester building society. If the special and borrowing members resolutions are passed, the commission intends to consider the societies' applications for confirmation on 14 February 1990, when it will consider any representations made by interested parties. That hearing must be directed to consideration of whether the statutory procedures and the provisions of the 1986 Act and the societies' rules have been complied with. It is not for the commission to consider the merits of the terms of a merger.