PREMIUM BONDS

Press, Volume XCIII, Issue 27986, 5 June 1956, Page 11

PREMIUM BONDS

Labour Opposes British Plan

(Rec. 8 p.m.) LONDON, June 4. The Parliamentary Labour Party, on the recommendation of its “Shadow Cabinet,” has decided to oppose the Government’s proposal for issuing premium bonds. Political correspondents say that the meeting at which the decision was made was poorly attended, and that many Labour M.P.’s are inclined to favour the plan. Most of those who oppose it do so because they believe the issue of £1 bonds, which will qualify for prizes by quarterly drawings, may simply attract money which would be saved in other ways as in the savings banks or cooperative societies and that there will be no increase in the total of savings. They also feel that this may do lasting damage to these traditional channels for national savings. Labour leaders also feel that it is scarcely in accordance . with British traditions to set up an expensive organisation to conduct what is virtually a State lottery, and that recourse to this is an admission of the Government’s failure to cope with the current financial economic problems. They also think that it would be a mistake for the Government to give offence to a very influential section of the community who do object to i premium bonds on moral and religious grounds.