Former MP for Gloucester
Did my right hon. Friend see the reports at the weekend that 40,000 people took to the streets of Paris to protest against the rising tide of European unemployment? Can he explain to the House why the same thing has not happened here and what will be the quickest way of making it happen here?
The hon. Member for Birkenhead (Mr. Field) will have noticed that the Northern Rock building society, in formulating its conversion proposals, has made provision for the setting up of a charitable foundation, the purposes of which will be to meet exactly the good causes that are described in new clause 2. It is open to societies at the moment to meet the spirit of the new clause, although...
The hon. Gentleman will also have noticed that a formula not dissimilar to his is likely to be embraced by the Alliance and Leicester building society. Of the societies currently converting, the one that stands out as refusing to meet the spirit of new clause 2 is the Halifax building society.
If the society is of the view that the requirement to maintain 75 per cent. of its assets in mortgage lending is unduly inhibiting on its activities, it will have another reason for converting, if it wishes to do so. It is for the society to decide whether that is a condition under which it can operate, in which case it should remain a building society, or whether the condition is unduly...
I should like to take this opportunity to declare an interest, in that I have accounts with several building societies. I suspect that I may be in a minority in fundamentally disagreeing with the proposition of my hon. Friend the Member for Bournemouth, West (Mr. Butterfill). One always feels a little uncomfortable disagreeing with my hon. Friend, because he is normally so sensible, but on...
I do not agree with that argument. My hon. Friend is looking at the matter from the perspective of the 1986 Act. He is not taking into account the new powers that the Bill confers on the building societies. In the course of time, the building societies will have been able to avail themselves of the additional powers that the Bill provides. Having done that, they will not be at a disadvantage...
I do not accept that, either. The restrictions that the Bill still places on building societies relate to activity which it would be best that they did not engage in. I do not believe that there is a popular view, for example, that building societies should engage in the derivatives market, which is known to be extremely risky. If the Bill provides, as it does, that in future building...
Is the hon. Gentleman aware that some building societies, such as the Portman, have found it possible to deal with speculators not by raising the minimum deposits on their account, but by welcoming anyone who wishes to open an account on the basis that the society is firmly committed to mutuality and no speculation will yield any benefit to the speculator?
