Eurozone Crisis

Lord Campbell-Savours Excerpts

Tuesday 17th January 2012 Lords Chamber

[Lord Campbell-Savours]

Has the Treasury carried out internally an inquiry into the level of exposure of British banks to banks within the eurozone that might collapse?

[Lord Sassoon]

My Lords, of course the FSA, in the course of its normal work, continually examines the exposure of the financial sector to a whole range of issues, including to the eurozone. The Europe-wide stress tests which were done, and done again, and finally done on a much better basis, looked at that matter last year.

Taxation: Inheritance Tax

Lord Campbell-Savours Excerpts

Wednesday 21st December 2011 Lords Chamber

[Lord Sassoon]

If we want good news, the borrowing figures announced today for November are ahead of market expectations. I can bring good news, but not gifts. Seriously, I hear very loudly what my noble friend says. Indeed, the Law Commission report, which has just come out and to which the Government will reply within 12 months, addresses the question of co-habitants. I see that the report at paragraph 8.52, which my noble friend may have seen, notes that concerns were raised about the use of the word “couple” in our provisional proposal in that it was too broad and ambiguous a term and might not be sufficiently precise to exclude, as we intended, those who share a home but do not have an intimate relationship. Indeed, this is not an area that is covered in the Law Commission’s work.

[Lord Campbell-Savours]

My Lords, does the Minister not accept that an inheritance can completely undermine incentives in recipient generations? Is that not an argument for increasing the take from inheritance taxes?

[Lord Sassoon]

My Lords, the Government keep all tax matters under review, but we have no plans, as I have said, to change the law on inheritance tax.

Independent Commission on Banking

Lord Campbell-Savours Excerpts

Monday 28th February 2011 Lords Chamber

[Lord Sassoon]

I see the clock is advancing because of the length of that question. I gave the answer I wanted to give.

[Lord Campbell-Savours]

Are not 90 per cent mortgages dangerous in conditions where the property market might decline by 20 per cent?

[Lord Sassoon]

My Lords, it is up to the banks to decide what products they offer. They have to do that within a set of rules that are set down by the regulators. It is not for me to comment on either the business model of an individual bank or the regulation and supervision of the regulators on this point.

Egypt: Mubarak Family Assets

Lord Campbell-Savours Excerpts

Wednesday 16th February 2011 Lords Chamber

[Lord Sassoon]

My Lords, there are a number of potential courses of action, but the principal one now is working with our EU partners, following a similar route to the one that was adopted in relation to Tunisia. My right honourable friend the Chancellor discussed the issue with his colleagues in the context of the ECOFIN meetings earlier this week. EU diplomats are discussing the issue this week and it will be on the agenda of the Foreign Affairs Council meeting on Monday 21 February. It could decide to request the Commission to draw up a regulation similar to the one that was drawn up on Tunisia, which would be enforceable in all EU member states.

[Lord Campbell-Savours]

The Minister referred to evidence of misuse of assets. Has any evidence of that nature been drawn to the Government’s attention?

[Lord Sassoon]

My Lords, it would be wholly wrong to discuss individual cases. Indeed, it is a matter for the police and the Serious Organised Crime Agency, because in parallel to what I have described as the EU route is the principal relevant UK legislation, the Proceeds of Crime Act 2002. Under that Act, it is for the police and SOCA to initiate as they see fit, and not for the Government to direct, any action on criminal activity that relates to proceeds of crime or money laundering.

Banking: Bonuses

Lord Campbell-Savours Excerpts

Tuesday 11th January 2011 Lords Chamber

[Lord Sassoon]

I am grateful to my noble friend Lord Hodgson and agree with his analysis. We need a successful and vibrant banking system in this country. We need healthy banks across the system, but it is particularly important for the taxpayer that the health of RBS and Lloyds is restored so that they can get a decent return in due course from its interest in those banks.

[Lord Campbell-Savours]

Is it not fair to say that bonuses based on share options could be quite remunerative?

[Lord Sassoon]

Indeed, bonuses based on a number of forms can be remunerative. It is now a fundamental part of the package agreed by G20 Ministers, incorporated in the European capital requirements directive in force from 1 January in the UK, that a significant part of bonuses now has to be paid in a non-cash form and cannot be cashed in for a considerable period. Absolutely, that needs to be part of the structure.

Autumn Forecast

Lord Campbell-Savours Excerpts

Monday 29th November 2010 Lords Chamber

[Lord Sassoon]

I, indeed, read some of the newspapers over the weekend with interest, but the forecasts have been handed over exactly in the way that the OBR suggested. My reading of the press was that they were making educated guesses because the forecasts of the OBR in respect of this year and next year have moved much in line with market forecasts. The press are always bound to speculate in contexts such as this one. Indeed, that is what they were doing.

[Lord Campbell-Savours]

My Lords, what did the noble Lord mean when he said “in principle” in regard to the question of the noble Lord, Lord Eatwell, which he did not answer?

[Lord Sassoon]

My Lords, forgive me but which of the questions of the noble Lord, Lord Eatwell, are we talking about?