Regulatory and Banking Reform

Debate between Brian Binley and Mark Hoban

Thursday 16th June 2011 Commons Chamber

[Mr Hoban]

Is that it? I really did wonder. The hon. Gentleman has played an important role in the Treasury Committee in challenging both this Government and the previous Government and holding them to account on banking reform and I should have thought he would welcome the fact that we are taking action to strengthen regulation of the banking system and to make sure that our banks are more secure. It would have been great if he had supported those measures.

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

I welcome the Minister’s statement, but may I remind him that the reorganisation of the regulators or, indeed, of the banking structure will do little to stimulate demand quickly? Mortgages were down 9% in April on the same period last year and other sectors are seriously under pressure. Will the Government think more seriously about stimulating demand?

[Mr Hoban]

My hon. Friend makes an important point and one reason why it was important to reach agreement with the banks on Project Merlin was to send a clear signal to businesses that there was credit available to viable businesses, as well as encouraging businesses to come forward to banks with applications for loans. Also important is the work that the British Bankers Association taskforce is doing to commission an independent survey to look at the relationship between banks and their customers. One concern is the amount of discouraged demand in the system and I believe that by looking very carefully at the relationship between banks and their customers, we can see whether banks are putting off businesses from making those applications.

Equitable Life

Debate between Brian Binley and Mark Hoban

Thursday 22nd July 2010 Commons Chamber

[Mr Hoban]

That will be a matter for the independent commission. One key point for EMAG and the ombudsman was the setting up of that commission. I want to give it the maximum latitude to decide its priorities for payment and who should be paid first.

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

The Financial Secretary has intimated that he aims to begin to make payments by the middle of next year. Thirty thousand policyholders, including a sizeable number in my constituency, have already died, and I urge him to rethink the question of making a pro rata, interim payment based on his cap figure. Will he please think about that more seriously than his previous answers suggest, because I am fearful that more people in my constituency will die and not receive fair treatment?

[Mr Hoban]

Many hon. Friends have raised that issue with me in debates in recent weeks, and I have asked my officials to look carefully at it. I have also thought through very carefully how we could make such a proposal work, but I am yet to be persuaded that we can do so in a way that is fair to policyholders who might not receive an interim payment.