MRS NONA Byrne, the chairman of the Catholic Building Society, has attacked the Government's National Savings scheme, which she said was being used as "a weapon in a massive assault on building societies."
The National Savings scheme was being pushed by the Government in its attempts to raise an increasing share of its borrowing requirements from private savings, she said.
She added: "In 1981 this could deprive us of 30 per cent of the funds we used for home loans in 1980. The Government has all the advantages, because it is not accountable to any shareholders for the high cost of its schemes. It can make up its own rules and outbid any investment institution. By any definition this is unfair Competition. It is also further relegation of sound housing policy to a much lower level."
She warned that Government policy was likely to lead to a "mortgage famine."
The CBS has a particularly .good record of helping prospective home-buyers who are not looked on favourably by other building societies.