Oral Answers to Questions

Chuka Umunna Excerpts

Thursday 13th January 2011 Commons Chamber

[Mr Speaker]

I call George Eustice to ask Question 10. He is not here.

[Mr Chuka Umunna (Streatham) (Lab)]

11. What discussions he has had with representatives of the banking industry on payment of bonuses since 21 December 2010.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

I meet the banks frequently to discuss a range of issues, remuneration being one of them. As confirmed by the Chancellor on Tuesday, he and I are in discussions with them to see whether we can reach a new settlement in which banks show restraint and pay smaller bonuses than they would otherwise have done, and demonstrate greater transparency and disclosure.

[Mr Umunna]

On 23 November the Business Secretary said:

“Transparency is key to creating confidence in any commitment from our banks to behave more responsibly on pay”.

Yet his efforts in Cabinet to implement a City pay and bonus disclosure scheme have come to nothing. On 19 December he was still claiming:

“There is much more disclosure in some other Western countries, and this is something we can do, something I can do.”

Yet the Chancellor will not allow him to do anything. Does not the Government’s inaction on this issue demonstrate that we have a Business Secretary in office but increasingly out of power?

[Vince Cable]

The hon. Gentleman tells a very interesting fictional story about Cabinet discussions. On transparency, we have a system of disclosure in this country for directors of public companies, as I am sure he is aware.

[Mr Umunna]

I was talking about bankers.

[Vince Cable]

In relation to banking, we are looking in our discussions at how to strengthen the system in line with international practice.

--- Later in debate ---

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

I think it was Yeats who said that education is lighting a fire, not filling a pail. I want the light of adult learning to burn brightly across the whole of Britain, which is why, against expectations and the predictions of our critics, we protected the adult learning budget, of more than £200 million, in the spending review. That light will burn as long as we are in government, and as long as I am the Minister.

[Mr Chuka Umunna (Streatham) (Lab)]

T7. The Business Secretary campaigned under the slogan “A fair banking system—change that works for you”. Eric Daniels, the outgoing CEO of the part-publicly owned state banking group Lloyds, will reportedly be taking home a package of £4 million in the current pay round—£2 million by way of bonuses and £2 million by way of incentives. Does the Business Secretary regard that as acceptable, and if not, what action will he be taking?

[Vince Cable]

I am amazed that Opposition Members keep dragging up issues relating to the contracts of senior executives in the semi-nationalised banking sector that they negotiated without proper support for the companies to which they are due to lend.