Governor of the Bank of England

Lord Kinnock Excerpts

Tuesday 10th July 2012 Lords Chamber

[Lord Sassoon]

To be clear, Parliament will have a role in that the Treasury Committee will, I am sure, hold a pre-commencement hearing if it so wishes. Again, as I said to the noble and learned Lord, I take on board the suggestions that are coming this afternoon.

[Lord Kinnock]

My Lords, does the Minister agree that the qualities required will include patience?

[Lord Sassoon]

Yes, my Lords, I am sure they will.

Economy: Monetary and Fiscal Policy

Lord Kinnock Excerpts

Tuesday 8th November 2011 Lords Chamber

[Lord Sassoon]

My Lords, I certainly agree that different countries should be taking different tracks, depending on their particular deficit and debt positions. I can only quote the concluding statement of the IMF, in its recent assessment, that:

“The current policy mix of tight fiscal and loose monetary policy remains appropriate”.

[Lord Kinnock]

My Lords, the Bank of England is patently seeking to foster growth with its very low interest rates and record QE, but the Government are actually depressing growth to virtually zero with their policy of public expenditure cuts that are too far and too fast. Is it not patently obvious that there is absolutely no co-ordination in the national interest at all?

[Lord Sassoon]

My Lords, I know that it is not for me to ask the questions this afternoon, but I wonder how much more expenditure and deficit the noble Lord, Lord Kinnock, would advocate before we risk getting into interest rates that are at the level of France, let alone of Italy. Last night the UK had 2.3 per cent 10-year interest rates, and Italy had 6.6 per cent heading for 6.7 per cent. Which would the noble Lords opposite like? We will stick to our deficit reduction plan, because that is what keeps interest rates low, and that is what our households and our businesses need.

EU: Financial Assistance

Lord Kinnock Excerpts

Wednesday 15th December 2010 Lords Chamber

[Lord Sassoon]

My Lords, I do not think there is any question of us being bypassed on key decisions in the European Union, as our participation in recent debates about Ireland and the wider crisis have demonstrated. It will be up to Europe to decide how the permanent arrangements are put in place. The October European Council resolved that there should be a crisis resolution mechanism, and there has been a verbal commitment that the UK will not be asked to be part of it.

[Lord Kinnock]

My Lords—

EU: Budgets

Lord Kinnock Excerpts

Thursday 2nd December 2010 Lords Chamber

[Lord Sassoon]

My Lords, I can certainly confirm what the noble Lord says. This does not necessarily excuse anything. If around 50 per cent of expenditure nevertheless does not meet the standards, whether through laxities in accounting or administration of the expenditure, it excuses nothing. Indeed, the level of fraud itself, which has been much discussed, is nevertheless at a very low level. According to the work of the European Anti-Fraud Office, OLAF, the level of fraud has decreased from 0.2 per cent of expenditure in 2007 to 0.07 per cent in 2008.

[Lord Kinnock]

My Lords, will the noble Lord further confirm the satisfactory rate at which the statements of assurance can be offered in respect of different parts of the budget? Secondly, will he also confirm that in areas where there is effective measurement of payments in and payments out, statements of assurance—as in administration, as the noble Lord, Lord Williamson, just said—have consistently been given? Will the Minister therefore encourage the Government to try to spread the good habits that have been developed in this country over recent years so that other member states, where there is a higher incidence of error and fraud, conform to the highest standards so that both the Commission and the Court of Auditors can undertake their work at a much more satisfactory level? That would please everyone.

[Lord Sassoon]

My Lords, I am happy to confirm that the consolidated statement that the UK and a handful of other member states are producing is the most useful practical way of demonstrating that the EU funds that the UK administers are well under control. There is little reference in the auditors’ reports to any matters in the UK. Leading by example is the way we should do it.