LIBOR (FSA Investigation)

Debate between Lord Watson of Wyre Forest and George Osborne

Monday 2nd July 2012 Commons Chamber

[Mr Osborne]

I will certainly take a close look at my hon. Friend’s Bill and get back to him on it.

[Mr Tom Watson (West Bromwich East) (Lab)]

The Chancellor said in his statement that he had asked Mr Wheatley whether participation in the setting of LIBOR should become a regulated activity. Does the Chancellor accept that public confidence in the British Bankers Association has completely ruptured, and that for the public it is a question not of whether, but of when, we take that responsibility away from it?

[Mr Osborne]

I completely agree with the hon. Gentleman that confidence in the process of setting LIBOR has been damaged—of course—by these revelations. That is precisely why, if I may say to him, I want to get on with it: that is why I have asked Mr Wheatley to do his report in the next couple of months, not even by the end of the year—so that we have the opportunity in October of amending, just before it becomes law, the Financial Services Bill. The hon. Gentleman is an expert on public inquiries, and I am sure he will agree that a public inquiry would take years to get to that point. Let us get to that point this autumn.

Oral Answers to Questions

Debate between Lord Watson of Wyre Forest and George Osborne

Tuesday 21st December 2010 Commons Chamber

[Mr Osborne]

I can indeed give my hon. Friend that assurance. This is an issue that the eurozone is publicly considering, as well as other potential routes forward for the eurozone. My efforts are concentrated on getting our gilt auctions away, and I can reassure him that, thanks to the measures we have taken, that is going well at the moment.

[Mr Tom Watson (West Bromwich East) (Lab)]

I see on my copy of the Liberal Democrat “Whip” for this week that all Lib Dem Ministers have been instructed to visit Oldham East and Saddleworth three times before 13 January. Will the Chief Secretary to the Treasury tell me on what days he intends to visit, and will he take the Business Secretary with him, so that they can outline their “Maoist revolution”?

Economic Affairs and Work and Pensions

Debate between Lord Watson of Wyre Forest and George Osborne

Tuesday 8th June 2010 Commons Chamber

[Mr Osborne]

The devolved Administrations have to be part of the wider spending review. With the best will in the world, we cannot let the three devolved Administrations simply determine what they will spend, particularly when most of them do not have significant tax-raising powers, but I give the hon. Gentleman the commitment that we will engage in an open and frank way and that we will listen to the concerns from Northern Ireland. I am well aware that one of the big challenges in Northern Ireland is how we can stimulate the private sector in Ulster, and we want to work with him on that. As I am sure he knows, the Secretary of State for Northern Ireland has some ideas in that area. We will engage not just with the Administration in Northern Ireland but with the Scottish Government and the Welsh Assembly and its Administration. For us, this is genuinely about trying to bind as many people as possible into a collective discussion which I hope other Opposition parties will be part of, even if the main Opposition party does not want to be.

Let me explain to the House how the review will work. First, we will build on the in-year savings that we have already made in order to drive for efficiency and value for money. We are creating a new efficiency and reform group at the heart of Government, which brings together a variety of bodies that are separate across Departments in order to try to bring to one place expertise on renegotiating contracts, maximising collective buying power and the like. We will ask for administrative spending in central Whitehall and quangos to be reduced by at least a third. Each Secretary of State will appoint a Minister with specific responsibilities in their Department over the next three months for driving that value-for-money agenda across their Department, and we will place a new obligation on public servants to manage taxpayers’ money more wisely by strengthening the role of the departmental finance director.

[Mr Tom Watson (West Bromwich East) (Lab)]

I strongly support the Chancellor in his drive to have more transparent budgeting, in particular the obligation on Departments to announce every item of expenditure over £25,000. Will he be legislating to make that a statutory obligation? Will he explain the slight incongruity between the obligation on local government to publish items of expenditure over £500 and civil servants getting away with a little bit more at £25,000? Does he think that merits him reducing that bar?

[Mr Osborne]

We chose £25,000 because, quite frankly, the US model suggested that that was an appropriate sum. I am very willing to consider moving to a lower level of disclosure in central Government, once we get the system up and running and working, but I did not want to make the sum so small that it stopped the thing working in the first place. Local councils have much smaller budgets, of course, relative to central Government, and that is why we chose a lower threshold. However, the £25,000 threshold is perhaps just the first step. The big IT challenge is to make the system work, but in the United States they have done so, and they call it “Googling your tax dollars”. Barack Obama, when he was a senator, helped to sponsor the Bill that introduced it, and we are absolutely committed to introducing such a measure here in the United Kingdom.

Secondly, the spending review will challenge Departments, local government and others to consider fundamental changes to the way they provide public services. As part of that process, every part of government and every spending programme will have to answer a series of probing questions. Is the activity essential to meet Government priorities? Do the Government need to fund that activity? Does the activity provide substantial economic value? Can the activity be targeted on those most in need? How can the activity be provided at a lower cost? How can the activity be provided more effectively? Can the activity be provided by a non-state provider or by citizens, wholly or in partnership? Can non-state providers be paid to carry out the activity according to the results that they achieve? And can local bodies, as opposed to central Government, provide the activity? The answers to those questions will inform a fundamental reassessment of the way in which government works.