Clause 3 - Requirements to be satisfied
Child Trust Funds Bill
2:30 pm
Mr Michael Jabez Foster (Hastings and Rye, Labour)
Despite the eloquence of the argument of the hon. Member for Tatton and his campaign for those financial institutions, I think that the amendment is unnecessary, and I hope that the Minister will not be persuaded by it.
This is a market issue. Some organisations have said that they will not take part, and that is well and good, because others will take part at the 1 per cent. that the Government initially suggested. I hope that the Minister will not be persuaded that a higher charge is required. I say that for a number of reasons. First, this is a simple product; it does not require lots of those glossy brochures, which we get in our post, that persuade us to invest in all sorts of things. All that is required is something simple. When people get Sainsbury's Nectar vouchers, they understand that they should spend them; they do not do nothing with them. I suspect that families of all social classes and groups will do something with their child trust fund voucher when it is posted to them. If not, the Bill makes provision for something to be done on the child's behalf. The costs will therefore be low.