§ Mr. PikeTo ask the Chancellor of the Exchequer (1) what representations he has received regarding building societies during the last 12 months; and if he will make a statement; [68436]
(2) what recent discussions his Department has had with building societies; and if he will make a statement; [68438]
(3) what proposals he has for legislation to protect the principle of mutuality; and if he will make a statement. [68437]
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§ Ms HewittThe Treasury has regular discussions with building societies and their representatives, who have put forward a number of proposals for legislation in recent years. Many of them, however, involve reducing Boards' accountability, or otherwise limit the rights of members—especially the less well off. This seems to the Government to be incompatible with the fundamental principles of mutuality. The Government have, however, increased the turnout threshold on conversion votes from 20 to 50 per cent., to ensure that conversions can occur only with the clear endorsement of members.