---

Banking Bill

This is a probing amendment but, in the light of some of the remarks about private banking that the Minister made in the Times on Saturday, perhaps it will receive the support that I had hoped for. My only disappointment is that we are debating what I consider to be a very important amendment so early in the morning, but I shall be as quick as I can in speaking to it. The Government have been talking about a universal bank for the Post Office since 2000, and it is time that the talking stopped and the action began—it is time to decide. The case for it is fairly straightforward. There are 12,000 branches nationwide, and it would bring banking to deprived areas and bring in those who are currently financially excluded. At the same time, now that the Post Office card account has been awarded, we could change it from an account from which people can only withdraw money that has been deposited by the Government. Indeed, we could turn it into a real, fully functional card, and that would be of advantage for people who are deprived or excluded and have to pay more. However, of course we would have to prevent them going into debt. The benefit to those in rural areas is self-explanatory. Banking facilities would be brought to rural areas, where the nearest bank is probably miles away. It would certainly be an advantage to the elderly, to people with disabilities, to mothers with children and to those without cars. I shall not go into that too much as it is self-explanatory. A lot of small and medium-sized businesses would also benefit. They rely on the Post Office and it would be a great advantage to them. This proposal is long overdue. The question of what type of bank it should be is a different matter. I was speaking to the National Federation of Sub-Postmasters, whose members would like a return of the National Savings Bank. It was in existence for about 108 years—I think that it was abandoned in 1969—and the federation feels that it would be a suitable vehicle. Others take the view that Girobank, which was highly successful, should be brought back. Unfortunately, it was privatised by a previous Government, and I thought that that was a mistake. That is another way in which this issue could be dealt with. From my own point of view, I think that consideration should be given to the new Britannia/Co-op merger. It is mutual and ethically responsible, and I think that it would fit well into the banking service. That is just a thought . Let me say finally that people like to go to the Post Office. They feel comfortable there. Many people who would not go near a bank go to a post office. Having made this plea, I hope that we shall not have to bring it back at Report, but I shall listen carefully to my noble friend’s reply. I beg to move.