§ Mr. Matthew BanksTo ask the Chancellor of the Exchequer what plans he has to publish a remit for sales of debt by the Department for National Savings. [18394]
§ Mr. NelsonThe remit for the Department for National Savings for 1995–96 is as follows:
Objectives
The Department for National Savings' declared aim is to support the Government's management of its debt and its policies for personal savings by attracting and retaining 864W investments from the retail market efficiently and cost-effectively.
The Department's primary task is therefore to be an efficient and cost effective source of funding for Her Majesty's Government. It is also charged with maintaining a suitable range of schemes to encourage savings among the population.
Volume of Funding in 1995–96
The net contribution of National Savings to funding in 1995–96 is assumed to be around £2.5 billion.
Responsibilities
The Treasury is responsible, under the National Loans Act 1968, for setting the terms of National Savings products. DNS will normally take the lead in bringing forward proposals to Treasury Ministers on product terms, including rates.
Cost comparisons
The Government intend that National Savings' contribution to funding should offer value for money overall compared with its other sources of funding. Product terms will take account of the need for DNS to retain the capability and market presence to contribute to the Government's funding needs over the medium term.