Ulster Bank

Debate between Lord Sassoon and Baroness Kingsmill

Thursday 5th July 2012 Lords Chamber

[Lord Sassoon]

My Lords, my noble friend makes a very good point. I do not know what arrangements are being made because, again, it is going to be principally affecting employees of the devolved Administration. But I will take that issue back. I am sure it is being thought about by my colleagues in Government but I will remind them of it.

[Baroness Kingsmill]

My Lords, does not the chaos and total mess in the RBS-owned banks at the moment, which is affecting so many retail customers, just emphasise a lack of investment in back-office systems and computers in these retail banks, disadvantaging a large number of customers, at a time when we have been focusing far too much attention on what has been going on in the casino banks?

[Lord Sassoon]

My Lords, I do not know the cause of this significant failure. The noble Baroness may be right but, as I said, the FSA expects RBS to provide it with a complete account of the issues. I welcome the fact that the chief executive of RBS, Stephen Hester, has made a commitment to a full and detailed investigation overseen by independent experts and publication of those findings. In due course, we will know what the explanation is.

Inflation

Debate between Lord Sassoon and Baroness Kingsmill

Wednesday 19th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, I am very happy to confirm that the Government have every confidence in the MPC. They regard its independence as a cornerstone in making sure that the Chancellor’s inflation target is hit as far as it is in the power of the MPC to achieve it. That is what it is asked to do and there is absolutely no interference. As I have explained before, a representative of Her Majesty’s Treasury does indeed attend MPC meetings—not in any way to interfere with the independent deliberations of the MPC but to make sure that the committee is aware of relevant Treasury policy decisions, such as what is coming out of budgets. That is all I can say.

[Baroness Kingsmill]

My Lords, what impact on inflation does the Minister think the recent increase in VAT will have?

[Lord Sassoon]

My Lords, first, the recent relatively high levels of inflation reflect, among other things, the previous Government returning the rate of VAT to 17.5 per cent, so that number is included and it is one of the factors behind the rise in inflation in December. As to the effect on inflation of the increase of the standard rate from 17.5 to 20 per cent, that depends on how much of the increase is passed on to consumers, and we will wait to see on that. However, because the rise to 17.5 per cent will come out of the inflation numbers, it will partially offset the effect of the increase that comes in in January.

Finance and Insurance Market: Underwriting Fees

Debate between Lord Sassoon and Baroness Kingsmill

Wednesday 12th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, as I have already said, it is expected that the Office of Fair Trading will report later this month, so we do not have long to wait. We should consider what the appropriate action is to take after my ministerial colleagues have had a chance to consider the recommendations of the OFT report. However, I hear what my noble friend says.

[Baroness Kingsmill]

My Lords, I wonder whether the Minister is aware that when I was deputy chairman of the Competition Commission I conducted an inquiry into precisely this issue. This marketplace is notoriously uncompetitive and it is only as a result of constant vigilance that we can keep everyone on the straight and narrow in this area. I hope very much that the Minister will agree with me that the Competition Commission is possibly the best place to resolve these issues and that it will do so—

--- Later in debate ---

[Baroness Kingsmill]

I have asked a question. Does the Minister agree with me that it will do so by the best possible method; that is, by conducting the inquiry with a panel of peers?

[Lord Sassoon]

My Lords, I am obviously interested to hear from the noble Baroness who has great experience in these matters. However, as she well knows, a range of outcomes could emerge from the OFT market study. Those could include enforcement action taken by the OFT through a market investigation reference to the Competition Commission, recommendations to government to change law or regulation, voluntary action by industry players or, indeed, a clean bill of health. We should wait to see what the OFT recommends.