Economic Growth and Employment

Debate between Gordon Banks and Andrew Bridgen

Wednesday 23rd November 2011 Commons Chamber

[Andrew Bridgen (North West Leicestershire) (Con)]

The hon. Gentleman echoes the shadow Secretary of State in criticising the Government for undertaking quantitative easing. In truth, this Government and the previous one undertook quantitative easing, but there is a huge difference between them. This Government are using QE to buy bank debt to put liquidity into the banks, which is much needed by business, whereas the previous one used QE to buy Government debt, because at the time, the rest of the world had lost confidence in buying it.

[Gordon Banks]

I never mentioned quantitative easing—I was talking about term loans. Term loans are being offered to businesses because they are better for the lender, not the borrower, and because they deliver a skewed figure into the Merlin arrangements. That cannot be acceptable. Business should not be run on term loans.