Debate on the Address

Dominic Grieve Excerpts

Tuesday 25th May 2010 Commons Chamber

[Keith Vaz]

I am very pleased to hear that, and when the Health Secretary comes before the House, I hope the hon. Gentleman will join me in pressing him for more money, not the same amount, to be spent on preventive work—I have already lobbied the Secretary of State on that in the Tea Room. If we prevent illnesses, we spend much less in the long term and we save lives.

Let me make two final points. First, on banking reform, I think we all got the message during the election about the need to be pretty beastly to the bankers. My concern is the Government’s proposal to hand regulation back to the Bank of England. A number of Members were first elected to Parliament at about the same time as me. I know that the Conservative Chief Whip was elected the year before, and my hon. Friend the Member for Middlesbrough (Sir Stuart Bell) was here before anyone present in this Chamber now, although he does not look as if that is the case; he still looks as young and spry as when he was first elected to the House.

One of the campaigns I took up was to do with Bank of Credit and Commerce International, the sixth largest private bank in the world, which suddenly closed because the then Government were not prepared to accept the Sheikh of Abu Dhabi’s cheque for $6 billion to keep that bank open—even though, of course, we kept Northern Rock open recently and gave a lot of public money to a number of other banks. The liquidation of BCCI is still going on. The right hon. Member for Wokingham (Mr Redwood) will remember that when he was a Trade and Industry Minister, I had a very good meeting with him at which we discussed what we were going to do about the liquidation. It may surprise him to know that this liquidation, which started on 5 January 1991, is still going on after all these years, with millions and millions of pounds going on liquidators’ fees. What might the sums involved have been if we had kept the bank open? It was the Bank of England that allowed BCCI to continue to trade, which is why I think handing regulation back to the Bank of England will be a problem. We have the Financial Services Authority, which began because of BCCI and the recommendations of the Bingham inquiry, so we should make sure that we are careful about moving around the regulatory system.

I know that we are to have a debate on Europe next week, and I look forward to taking part if I catch your eye, Mr Speaker. It is important to clarify exactly where we stand on the European Union, especially as we have a Government who appear to be going in two different directions with their manifestos—although perhaps not with the coalition document. I have no problems with a referendum whenever there is a treaty that means that powers will be ceded from the UK. If we accept the Prime Minister at his word—we ought to, because he has been in office for only two and a half weeks—he will never agree to anything that means that powers will be taken from Westminster to Brussels, so we shall not have a referendum over the next five years. However, I am keen on the Liberal Democrat proposal, which I supported, that we should have a referendum on whether we should stay in the EU. I hope we can explore some of those issues in the debate on Europe next week.

My final point is about something in the Queen’s Speech that has not yet been explained. The sovereign—on the recommendation of the Prime Minister—talked about an enhanced relationship with India. I warmly welcome that. We should have the strongest possible relations with India. When I was Minister for Europe, the European Union began the EU-India summit meetings, but we have not given India sufficient attention. We should do so not just because of the 2.5 million people of Indian origin who live in the UK—some of them in my constituency—but because it makes good economic sense for us to do business with India and to have a strong and firm relationship.

The Attorney-General is on the Treasury Bench. He will know that the Indian diaspora has moved from places in south London such as Southall to Beaconsfield. If he looks at his diary, I think he will find that most of the parties he attended to celebrate his election were organised by the Indian community in Beaconsfield.

[The Attorney-General (Mr Dominic Grieve)]

The right hon. Gentleman is undoubtedly correct. Evenings of bhangra dancing and hospitality are well worth enjoying. I think he already knows that the Gerrards Cross south ward in my constituency—the wealthiest ward in the UK—is about 20% Asian.

[Keith Vaz]

I do know that. I have all the statistics and I know how much people in Gerrards Cross love the hon. and learned Gentleman. I am sure that now he is the Attorney-General, they will use his services well.

We must keep our relationship with India going. When the Prime Minister visits India on 2 October, he should take the advice Members gave previous Prime Ministers and make sure that he involves the Indian diaspora. Let us have firm, strong relationships with that very important country.

On that note, I end my speech. I wish the Government well in getting their legislation through.