Oral Answers to Questions

Debate between Angela Eagle and Vince Cable

Thursday 3rd June 2010 Commons Chamber

[Vince Cable]

I thank the hon. Gentleman for his welcome, and I am grateful to him for allowing this crucial subject to surface at last. The major factor in inhibiting the growth of business, particularly among small and medium-sized enterprises, is the lack of access to credit. It is the firm intention of this Government to ensure, through a combination of loan agreements, guarantees and other mechanisms, that that credit will indeed flow. I shall be working with the Chancellor on this.

[Ms Angela Eagle (Wallasey) (Lab)]

In what way will the Secretary of State ensure that bank credit flows? How is he going to keep the House informed of how successful his pious hopes turn out to be in practice?

[Vince Cable]

I look forward to keeping the House informed of progress. One of my criticisms of the last Government, which I made from the Opposition Benches, was that despite their successful intervention in the latter part of 2008, the banks then ran rings around them. The lending agreements were never enforced, and the semi-nationalised banks simply did not act on the instructions that they were given. We in this Government intend to do a lot better.