Banking: Bonuses

Lord Greaves Excerpts

Tuesday 11th January 2011 Lords Chamber

[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.

[Lord Greaves]

My Lords, the Independent this morning has some devastating quotes in recent months from the Prime Minister, my right honourable friend the Deputy Prime Minister, the Chancellor and the Business Secretary that can only be taken by ordinary people to mean that large, multimillion pound bonuses would be stopped by the Government. That is the only reasonable interpretation to put on them. Would it be sensible, if senior members of this Government cannot deliver such things, for them not to give the impression that they are going to do so? That is simply a propaganda own goal. Would the Minister also comment on the view from a former Business Secretary that the rich have suffered enough?

[Lord Sassoon]

My Lords, I am conscious of the time. All I can say is that my right honourable friend the Chancellor has made it completely clear what we are doing today, which is a considerable package of things, one element of which is to talk actively to the banks with the aim of ensuring that the bonuses they will pay this year will be lower than they would otherwise have paid.