§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what policy action he is considering to avoid demutualisation of building societies adding to consumer demand in 1997–98 and 1998–99; and if he will make a statement. [11337]
§ Mrs. Liddell[holding answer 29 July 1997]: We have received a number of representations suggesting steps that the Government might take to deter further demutualisations of building societies. The Government are committed to the benefits of the mutual building society and the opportunities for choice for the consumer. However, a number of UK representatives raise difficult issues of principle because they could frustrate the will of the members, or significantly reduce the board's accountability to them. Nevertheless, we are keeping the situation under review.