Oral Answers to Questions

Debate between Guto Bebb and Vince Cable

Thursday 18th July 2013 Commons Chamber

[Vince Cable]

I recognise the considerable value of the Public Services (Social Value) Act 2012, and I acknowledge the right hon. Lady’s role in promoting its take-up. The Department has a unit that is currently promoting social enterprise, which lies at the core of this issue. Some 68,000 such enterprises now employ 1 million people, and I was at the launch of that unit last year. For our overall policy, we try through the industrial strategy to ensure that procurement is strategic and takes into account long-term training and innovation requirements.

[Guto Bebb (Aberconwy) (Con)]

T2. My right hon. Friend is well aware of the scandal of mis-selling interest rate derivatives to small businesses, but despite the establishment of the Financial Conduct Authority redress scheme in January, not a penny has yet been paid out to small businesses. On Tuesday, one small business was offered a redress package for a technical fault of £1.3 million, but the offer was made on condition that no payments would be made by the bank in question unless the business also settled the consequential loss claim. Will my right hon. Friend take up that issue with the FCA and ensure that technical redress is paid prior to any agreement on consequential losses?

[Vince Cable]

My hon. Friend is right that this is a major scandal and it is being pursued through negotiation with the banks. As he rightly says, there are major anxieties about the terms of the settlement and some of the products currently excluded from it. I will see the head of the FCA next week to pursue the matter in some detail on behalf of my hon. Friend and his colleagues, and I acknowledge the enormous work he has done in the background to bring these problems to proper attention.

Oral Answers to Questions

Debate between Guto Bebb and Vince Cable

Thursday 7th February 2013 Commons Chamber

[Vince Cable]

Yes, I am familiar with the site. It was strategically important for childhood trainspotting, as I recall, quite apart from its potential for housing and regeneration. I am happy to meet the hon. Gentleman. I have already discussed this matter with the council leader and the chief executive. They need some support for infrastructure, although the scale of that is not terribly clear, but we are certainly keen to take this forward.

[Guto Bebb (Aberconwy) (Con)]

T8. Does the Secretary of State share my concerns that the Financial Services Authority redress scheme for businesses mis- sold interest rate swap products excludes those businesses that have a life swap value in excess of £10 million, despite the fact that those businesses would otherwise be characterised as “unsophisticated” by the FSA’s own rules?

[Vince Cable]

First, I congratulate the hon. Gentleman on his work on behalf of the up to 100,000 companies that have been mis-sold these swaps. It is a terrible scandal and he was one of the first people to highlight it. I think the position is now much better, but he is right to say that there are some anomalies at the borderline. The definition of “sophisticated companies” is not simply confined to scale, which I think is the point he is trying to make. I will continue to make that point to the FSA and the banks.