Oral Answers to Questions

Debate between David Mowat and Harriett Baldwin

Tuesday 27th October 2015 Commons Chamber

[David Mowat (Warrington South) (Con)]

11. What progress his Department has made on implementing ring-fencing proposals to enhance the stability of major banks.

[The Economic Secretary to the Treasury (Harriett Baldwin)]

The Government are fully committed to implementing a robust and effective ring-fencing regime, and we remain firmly on track for the separation of banks by January 2019. We passed the last legislation implementing the Independent Commission on Banking ring-fencing recommendations this year, and the Prudential Regulation Authority is currently consulting on the second tranche of implementation rules before publishing the final rules this year.

[David Mowat]

I thank the Minister for that answer. In 2012, the then Governor of the Bank of England said that unless these regulations were tightly specified there was a risk of their being watered down before implementation in 2019. We now see Barclays joining RBS and Lloyds in requesting significant waivers. Will the City Minister reconfirm the Government’s commitment to Vickers and the design principles within the legislation?

Royal Bank of Scotland

Debate between David Mowat and Harriett Baldwin

Thursday 11th June 2015 Commons Chamber

[Harriett Baldwin]

I thank the hon. Lady for her kind words. She is absolutely right to highlight this country’s challenge on access to finance, particularly for the small and fast-growing sector for which bank finance might be appropriate, but it might want to move on to something else. My right hon. Friend the Secretary of State for Business, Innovation and Skills is looking at a package of measures to make sure that businesses in Hull and elsewhere are able to have a wider range of choice in accessing finance.

[David Mowat (Warrington South) (Con)]

As far as I can make out, the position of the Opposition is that if we delay this sale, the shares might go up by 35%, and they might break even, which would be a good thing. Of course, though, they might go down. Does the Minister agree that they have no right to speculate with other people’s money, particularly when financed by an overdraft? If they believe this, they should buy some shares themselves.

[Harriett Baldwin]

There seems to be no pleasing Opposition Members. They are not happy when Royal Mail shares go up and we sell them for more money; and they are not happy when the RBS share price is where it is today. They seem to argue that the best thing to do, in all these situations, is to borrow more, spend more and invest more in the banking sector.