Banking: Bonuses

Lord Ryder of Wensum Excerpts

Tuesday 11th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, I am sorry if I will become tediously repetitive, but if the questions cover points that I thought I had made clearly, I will have to make them again. We are taking far more practical and effective action than the previous Government did. We have extended very considerably the scope and form of the disclosures on bonuses that must be made. As to the quantum, I repeat to the noble Lord, Lord Clinton-Davis, that discussions led by my right honourable friend the Chancellor are ongoing, with the intention of making sure that bonuses are lower than otherwise they would have been and that lending to British businesses is materially and verifiably higher than it would have been. That is what we want in the context also of a vibrant and healthy banking system, which is good not only for this country but for the UK's global competitiveness.

[Lord Ryder of Wensum]

My Lords, will my noble friend tell us whether bankers in New York and Frankfurt are being offered the same type of bonuses as bankers in London? Will he further tell us whether the American and German Governments take the same attitude to bonuses as this one?

[Lord Sassoon]

My Lords, I am grateful to my noble friend Lord Ryder for enabling me to remind noble Lords that other Governments are increasingly following the lead of the UK and introducing variations on the measures that we have introduced for the taxation of banks. Since the announcement of our bank levy, Germany, France and other countries have followed with similar constructs. It is critical that we make sure that, while the UK regime is the toughest interpretation among global financial centres of what has been agreed internationally, we seek to work within the framework laid down by the Financial Stability Board and endorsed by G20 Ministers. Whether it is in relation to the US, other European countries or global financial centres, we will continue to work energetically with our partners to secure, as far as is possible, common standards in this area.