Governor of the Bank of England

Debate between Lord Tomlinson and Lord Sassoon

Tuesday 10th July 2012 Lords Chamber

[Lord Sassoon]

Yes, my Lords, I am sure they will.

[Lord Tomlinson]

My Lords, does the Minister agree that the next Governor of the Bank of England, besides having the proven competence that has clearly grabbed the Minister’s attention, should also be a person of honour and integrity—the sort of person who, should he or she wrongly impugn anyone’s integrity, would at least have the grace and courage to stand up, admit it and apologise?

[Lord Sassoon]

My Lords, if that is an oblique reference to my right honourable friend the Chancellor, I do not believe that an apology is needed. I agree with the noble Lord, Lord Tomlinson, that honour and integrity will be among the qualities needed by a future governor.

Eurozone

Debate between Lord Tomlinson and Lord Sassoon

Thursday 17th May 2012 Lords Chamber

[Lord Sassoon]

Because it is a complicated Question, which deserved a somewhat fuller Answer.

[Lord Tomlinson]

My Lords, as the decisions affecting the eurozone clearly have a major impact on this country and its economy, can the noble Lord at long last tell us precisely what advantages are achieved for the United Kingdom by excluding ourselves from some of the very important European decisions?

[Lord Sassoon]

My Lords, we are not excluding ourselves from very important decisions; we are saying that it is for members of the eurozone to take the lead in sorting out the problems with the euro. We are very much at all the discussions. As well as questions of potential and past bailouts, we are discussing growth strategies and the completion of the single market, which will put Europe back on a sustainable growth path.

EU: Economic and Financial Issues

Debate between Lord Tomlinson and Lord Sassoon

Monday 12th March 2012 Lords Chamber

[Lord Tomlinson]

The Minister referred in reply to the original Question to the failure to satisfy all our negotiating points. Is he yet in a position to share with the House what specifically were the negotiating objectives and which ones in particular are not satisfied by the financial compact?

[Lord Sassoon]

My Lords, I really cannot add anything to the previous discussions we have had on a number of occasions. It is nice to have the question asked by a different noble Lord this time, but I cannot add anything to what has been said before.

EU: Budget

Debate between Lord Tomlinson and Lord Sassoon

Thursday 28th April 2011 Lords Chamber

[Lord Sassoon]

I am grateful to my noble friend for once again drawing attention to the unacceptable situation that we face with regard to the European audit. I think that he puts his finger on one of the key issues, which is that we need to work towards a much simpler and more transparent regime. If the rules around the various European expenditure programmes were made less complex, it would be much easier for member states to comply with those rules. It is very much on that practical aspect of the regime that my honourable friend the Economic Secretary is working with the Audit Commissioner, others in Brussels and member states to make sure that we move to a simpler, clearer and more auditable regime.

[Lord Tomlinson]

Is the noble Lord aware that, just before he retired, the former Comptroller and Auditor-General of the United Kingdom, Sir John Bourn, said that if he had to apply to the expenditure accounts of the United Kingdom the system for audit employed in the European Union, he would refuse to give a positive assurance on any of those accounts because the real problem with the statement of assurance in the European Union is the statistical basis on which that audit is conducted? Will the noble Lord undertake to look at that question and to see whether, if one ever wants to get a clean audit, it is appropriate to try to initiate a reform of the statistical base of the statement of assurance?

[Lord Sassoon]

My Lords, I am happy to say that we are already on the case in this matter. At the ECOFIN in February, the UK issued a joint statement with the Netherlands and Sweden making various points about what we believed needed to be done by the European Commission and the auditors in coming years. That included, among other things, moving the European audit basis to a more risk-based approach, which I think precisely addresses the point that the noble Lord rightly brings up.

Independent Commission on Banking

Debate between Lord Tomlinson and Lord Sassoon

Monday 28th February 2011 Lords Chamber

[Lord Sassoon]

My Lords, there are a lot of hypothetical questions bound up in this. We will not see what the commission is proposing until September and then it will be up to the Government, in light of all the circumstances, to decide what to do with its recommendations. I can confirm that the separation of retail and investment banking is one item which goes to the heart of the remit of the commission.

[Lord Tomlinson]

As the noble Lord has now had plenty of time to reflect on the question that he was asked by my noble friend Lord Eatwell, will he now, as there seems to be plenty of time, get around to answering it?

[Lord Sassoon]

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

EU: Budgets

Debate between Lord Tomlinson and Lord Sassoon

Thursday 2nd December 2010 Lords Chamber

[Lord Sassoon]

I do not want to go over old ground; I have talked about the fraud issue, which we should not get out of perspective. We nevertheless should not be complacent about any of this. There has to be a formal vote each year to discharge the Commission in respect of the audit qualifications. The previous Government never used their vote in this respect when the annual discharge was voted on. As my honourable friend the Economic Secretary has said, the Government plan to be ready to use our vote if the accounts fail to meet the standards that we think they should. We have to strike a balance here and be seen to take tough action if that is appropriate.

[Lord Tomlinson]

My Lords—

EU: Economic Governance

Debate between Lord Tomlinson and Lord Sassoon

Wednesday 27th October 2010 Lords Chamber

[Lord Sassoon]

My Lords, I welcome the question from my noble friend. It enables me to restate that it is perfectly right and proper that the UK should be subject, as it is, to the financial disciplines of the stability system in the EU. This means that we are required to exercise fiscal discipline. Indeed, the July council expressed itself satisfied. It said that the new UK Government’s proposals for deficit reduction were adequate to meet our responsibilities. It is quite right that we should go that far but, equally, we are not members of the eurozone. The system of sanctions that applies in the eurozone escalates to fines, as my noble friend said. The sanctions can start by requiring interest-bearing deposits, then non-interest-bearing deposits and finally fines. It is completely appropriate that those should apply to the eurozone and not to the UK.

[Lord Tomlinson]

My Lords, the noble Lord said clearly on two occasions that treaty changes are not on the table and that we will consider them with an open mind if they are. However, will he accept that treaty changes, if they are proposed, will reopen the whole of the Lisbon treaty box and require parliamentary ratification? Will he also be a little more robust in telling us that he can see no circumstances at present in which Her Majesty’s Government will consider treaty changes?

--- Later in debate ---

[Lord Sassoon]

My Lords, the task force has come forward with some significant proposals for strengthening the framework within the eurozone. I echo the noble Lord’s sentiments in respect of the task force proposals, but those proposals, which would be a significant step forward, do not themselves require any treaty changes. There may be other suggestions, such as the idea of a permanent crisis resolution framework, which may require treaty change. The UK Government absolutely support the euro area’s desire to take positive action to overcome its problems through the creation of an appropriate framework. If that has treaty consequences, we will look at it in that spirit.

[Lord Tomlinson]

My Lords, the Minister did a bit of a soft-shoe shuffle in replying to the question asked by the noble Lord, Lord Marlesford. He talked about the next financial perspective, whereas I am sure that the noble Lord was arguing about next year’s budget. In the interests of clarity, will the Minister tell us how Her Majesty’s Government voted in council in relation to the budget for the year 2011? Did they show financial discipline or did they vote in favour of it?

[Lord Sassoon]

My Lords, forgive me, but I cannot recite how we voted on each matter at each council meeting. However, I will write to the noble Lord in answer to that question.