Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 28 January 1947.
Mr Roland Robinson
, Blackpool South
12:00,
28 January 1947
asked the Chancellor of the exchequer whether he is aware that the Co-operative Wholesale Society's Bank is offering local authorities an interest rate of 1 per cent. on current accounts, as opposed to no interest from the joint stock banks, and 2 per cent. on deposit accounts provided seven days' notice of withdrawal is given, as opposed to one-half of one per cent. offered by the joint stock banks with 14 days' notice of withdrawal; and how he proposes to meet this threat to his cheap money policy.
Mr Hugh Dalton
, Bishop Auckland
I am aware of these facts, and am in touch with the Co-operative Wholesale Society on this subject.
Mr Roland Robinson
, Blackpool South
Can the Chancellor of the exchequer say what inducements there are to lenders to take out Treasury Bills or long-term Government loans at 2½ per cent., when they can do seven days' business with the Co-operative at 2 per cent.? Does he not think it right that the Co-operative Bank should be put under the same Treasury policy and have to pay the same as the joint stock banks?
Mr Hugh Dalton
, Bishop Auckland
As I have said, I am in touch with the Co-operative Wholesale Society on the subject. I have been in touch with them from time to time on a great number of matters, of which this is only one, and they have given great support to the Government in many respects, not least by holding £200 million Government securities, which is more than most private enterprises hold. As I have said, I am in touch with them on this matter, and they are well aware that I Should welcome a reduction in interest rate—they know that, and I have told them. They did, in fact, at my request make a reduction at the beginning of last year, and I am in touch with them again.
Sir John Crowder
, Finchley
Is it not a tact that instructions have been given by the Treasury to the joint stock banks that they are not to give more than half per cent. on deposit accounts, and if such instructions have been given, why not give similar instructions to the Co-operative Society?
Mr Hugh Dalton
, Bishop Auckland
I do not know whether this House wants me to use my powers of direction under Section 4 of the Bank of England Act, but if that is the request of the Opposition, I will take it into account.
Brigadier Sir Harry Mackeson
, Hythe
Is it the desire of the Chancellor of the exchequer that local authorities should bank with the Co-operative Society?
Mr Hugh Dalton
, Bishop Auckland
I would not venture to intervene in what is a matter of choice for the local authorities.
Mr Quintin Hogg
, Oxford
What we want is that the Chancellor of the exchequer should operate his powers fairly and equally.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
A proposal for new legislation that is debated by Parliament.
The Opposition are the political parties in the House of Commons other than the largest or Government party. They are called the Opposition because they sit on the benches opposite the Government in the House of Commons Chamber. The largest of the Opposition parties is known as Her Majesty's Opposition. The role of the Official Opposition is to question and scrutinise the work of Government. The Opposition often votes against the Government. In a sense the Official Opposition is the "Government in waiting".
