§ Mr. Tim SmithTo ask the Chancellor of the Exchequer if he will list the members of the Treasury committee on local authority borrowing; how often the committee meets; what are its terms of reference; when the status of the list of authorised institutions was last discussed; what advice the representative of the Bank of England gave about the status of the list; if he will publish the minutes of the meeting; and what information he has about the subsequent circulation to local authorities by the local authority associations represented at the meeting of the advice given by the Bank of England.
§ Mr. MaplesThe Committee on Local Authority Borrowing is chaired by the Treasury and includes Government and Bank of England officials and representatives from the local authority associations. There is no regular cycle for meetings. The terms of reference are
to consider Local Authority Borrowing".The status of the list of institutions authorised under the Banking Act 1987 was discussed at the meeting held on 10 May. The issue was raised because some local authorities had deposits with Chancery bank, which had been put into administration. A Bank of England representative advised that:
810Wit was important to regard the list of authorised institutions as just that: a list of institutions authorised to take deposits at the date of the list.… The list did not say anything about the relative creditworthiness of the institutions or that they could not fail. That was an assessment the local authorities, and other depositors, had to make.A copy of the minutes of the meeting are being placed in the Library. The minutes are sent to those present. Wider circulation by the representatives of the local authority associations is a matter for them.