Considered in Committee under Standing Order No. 69.—(King's recommendation signified.)

[Mr. HUBERT BEAUMONT in the Chair]

Motion made, and Question proposed, That, for the purposes of any Act of the present Session relating to Finance, it is expedient to authorise the payment out of the Consolidated Fund—

1. (a) of such sums, into the Post Office Savings Bank Fund and the Fund for the Banks for Savings, as may be provided for by the said Act;
2. (b) of such expenses (including the remuneration of members and officers) of the Inspection Committee established under section two of the Savings Banks Act, 1891, and such expenses of the National Debt

10.0 p.m.

Would it be possible to know what this is about?

I will explain it if the Committee desire, but it will be debated again. The short point is this. The rate of interest on the Savings Bank deposits stands at 2½ per cent. It has so stood for a very long time, and I have no intention of altering it. I have already said that in reply to a Question in the House. The consequence, however, might be—although it is not yet the case—that a deficiency would arise on the Savings Bank accounts. As the rates of interest on Government securities in general have been brought down, it might be that when we take account also of expenses of management, in a year or two's time, if the cheap money policy progresses well, there would be a slight deficiency on these accounts. For this reason we desire to institute a change of practice—I mentioned this briefly in my Budget speech—and to put the backing of the Consolidated Fund behind the deposits in the Savings Banks and Trustees Savings Banks, the purpose being to give an even greater security than at present exists for those deposits. It is in order that this should be discussed at the right moment that this Resolution is moved.

I did not appreciate that the real purpose was to put Savings Bank depositors into a position of the greatest possible security. Frankly, I have always disliked Motions being brought in by the Government before there is any necessity for them. If there is any real necessity for this Motion, I believe it could have been passed through easily at almost any time, and it must necessarily create a feeling—

Is the hon. Member opposing the Motion?

I am seeking information, and I think the only way in which I can do that is to voice an objection to the Motion. I take it that I am allowed to do that.

At this hour of the night the hon. Member cannot oppose the Motion.

May I ask under' what Rule I am not allowed to oppose the Motion?

If the hon. Member wishes to oppose the Motion he cannot do so now.

Under those circumstances, I do not see why it need necessarily be taken now, and I shall oppose the Motion.

It being after Ten o'Clock, and objection being taken to further Proceeding, The CHAIRMAN left the Chair to make his Report to the House.

Committee report Progress; to sit again tomorrow.