G8 and G20 Summits

Brian Binley Excerpts

Monday 28th June 2010 Commons Chamber

[The Prime Minister]

The hon. Gentleman has long taken that view, but even though he makes that case he wildly overstates it. If we talk to British soldiers who serve with the Afghan national army they say that those soldiers are brave, they work hard and they are committed. Yes, of course we need to improve recruitment from all parts of the country, but I do not think it is fair to characterise the army as he does. There have been problems with the Afghan police force, but when we go to Afghanistan we see police trainers from European and American countries doing good work. I do not accept that all is as bleak as the hon. Gentleman puts it. We have had a number of casualties, which are heartbreaking in every individual case and it is heartbreaking that there are so many, but we have to remember what we are doing in Afghanistan. It is not creating the perfect society; it is training up the Afghans so that they can take care of their own security and we face fewer attacks from terrorist groups trained in the Afghanistan-Pakistan border area. The hon. Gentleman shakes his head, but the fact is that today the number of threats coming from that area is reduced, because of what we have done in Afghanistan and because of what the Pakistan Government are doing in Pakistan. Of course we should not be blind to people’s concerns, but we should try to take people with us on the success there has been in reducing those threats.

[Mr Brian Binley (Northampton South) (Con)]

The Prime Minister will know that business growth is vital for the Chancellor’s plans and that credit is vital to business growth. The Governor of the Bank of England warned on Friday that lending to business remained weak and there was a risk of “disruption of credit”. The G20 proposals could cause banks more serious concern in that respect, so what will the Prime Minister and the Government do to make sure that small and medium-sized enterprises receive the credit they need to ensure growth in this country over the next three years?

[The Prime Minister]

My hon. Friend makes an extremely good point, and the concern that we should have about the economy is not the fiscal tightening that needs to happen, but to ensure that the banks are lending and that monetary policy is working effectively. Of course, monetary policy is not just interest rates—the price of money—but we also have to think about the quantity of money, which is bank lending. My right hon. Friend the Chancellor in the Budget made a number of improvements to the credit lending schemes. I think that we can look to see whether there is even more that should be done, but let me repeat that the key thing that we were trying to do at the G20 was not to enforce credit rules now that would restrict lending, but to put in place the measures for the long term that will stop the catastrophe that we suffered in 2008 and 2009. That is the key. In Europe, we are stress testing the banks to ensure that they have adequate capital. Again, that is important: we need to ensure the soundness of the banking system, because that is part of the key to recovery.