Oral Answers to Questions

Debate between Guy Opperman and Greg Clark

Tuesday 14th October 2014 Commons Chamber

[Greg Clark]

I must tell my hon. Friend that not just one part of the coalition was responsible for those achievements. I negotiated rigorously with the leaders of all the parties in Cornwall, and we secured a very good deal, which will enable more decisions and resources to be devolved to Cornwall for the benefit of the people who know and love the area best. That is a big achievement, which was widely welcomed in Cornwall.

[Guy Opperman (Hexham) (Con)]

rose—

Financial Services (Banking Reform) Bill

Debate between Guy Opperman and Greg Clark

Monday 8th July 2013 Commons Chamber

[Greg Clark]

The hon. Gentleman makes a good point. He will know from our proceedings during the passage of the Financial Services Act 2012 that we needed to reverse the catastrophic decision to take supervision of the banking system away from the Bank of England, which had always exercised that role with authority and commanded respect not only in this country but throughout the world. That Act corrected the situation, and the PRA is part of the Bank of England, as he knows, so we have restored that authority.

[Guy Opperman (Hexham) (Con)]

Does the Minister agree that higher banking standards and the PRA’s new role were enthusiastically endorsed at the multi-level banking seminar in support of regional banking that we held in Gateshead only last month?

[Greg Clark]

My hon. Friend’s ingenious intervention allows me to pay tribute to the excellent event he hosted in Gateshead at which there was palpable enthusiasm for challenger banks entering the market, especially ones with a regional focus. He and I share an ambition that the north-east should be the home of such a bank, which would do wonders for the region’s economy, with its strong, vibrant business culture. The area would benefit from the local knowledge of such an institution. The PRA and the FCA were represented at the discussion, and he is right to reflect that everyone who was present on that Friday was enthusiastic about the steps the PRA is taking to make it easier for challenger banks to come forward.

[Chris Leslie]

If the Government are so enthusiastic about the concept of regional banking, will the Minister explain to the hon. Member for Hexham (Guy Opperman) why their report, which came out at lunchtime, explicitly rules out any review of a structural arrangement involving regional banking for the Royal Bank of Scotland?

[Chris Leslie]

Perhaps the hon. Gentleman did not hear me first time round. I am tempted to repeat myself, but it is important that he realises that his right hon. Friend the Minister has ruled out such an arrangement for RBS.

[Greg Clark]

The right way to approach this is to make it possible for regional banks to enter the market across the board, which is precisely what the PRA is doing. It has reduced the demands that entrant banks must satisfy to establish themselves as a business and speeded up the authorisation process, which is all to the good.

[Guy Opperman]

Does the Minister recall that in April last year, the Labour party, taking its lead from the hon. Member for Nottingham East (Chris Leslie), who is sat in a sedentary, chuntering position on the Opposition Benches, voted against the implementation of the competition regulations that would have made regional banks happen?

Banking Reform

Debate between Guy Opperman and Greg Clark

Monday 4th February 2013 Commons Chamber

[Greg Clark]

The hon. Lady makes an excellent point. I should like very much to see banks in our great regional cities, as used to be the case: banks that can take deposits from local people and, knowing what local investment opportunities they have in the area, can establish a connection. So far it has been very difficult for new banks to obtain banking licences within a reasonable period, and to satisfy the regulatory requirements. We are doing all that we can to lower the barriers to entry, so that we can achieve exactly what the hon. Lady has described.

[Guy Opperman (Hexham) (Con)]

I welcome the proposal, as well as the fact that we are taking on the bully banks on interest rate swaps and clearing up the big banks, which have had grave deficiencies for a considerable time. Does the Minister agree that the Bill will also make it easier to create the local, regional banks that we need to provide the competition, access to finance and community trust we are trying to establish in places such as the north-east, where we are proposing a bank for that region?

[Greg Clark]

My hon. Friend is right about that, and it may interest the hon. Member for Kingston upon Hull North (Diana Johnson) to know of the example that he and I were discussing in Newcastle recently. We were looking at ways in which we can make it possible for there to be a north-eastern or Tyneside bank that can specialise in the north-eastern economy.

Oral Answers to Questions

Debate between Guy Opperman and Greg Clark

Tuesday 29th January 2013 Commons Chamber

[Greg Clark]

The hon. Lady is not quite right. In fact, the greater number of jobs created have been full time rather than part time. It is important to understand that the term “underemployment” refers to people who would like more hours even if they are employed full time. The fact is that 90% of people in work say they do not want any more hours. Most of the rise happened before the election. Since the election, the number of full-time jobs has increased faster than the number of part-time jobs.

[Guy Opperman (Hexham) (Con)]

The Minister and I met local enterprise partnership members in Newcastle 10 days ago and discussed the city deal and the increase in job numbers. Does he agree that, with a 9,000 increase in job numbers in the north-east in the last quarter, all jobs should be welcomed, whether they are part time or full time?

[Greg Clark]

My hon. Friend is absolutely right. The number of hours being worked in the country is at a record level. We should not sneer at people who choose to work part time. That is their option, and they have more opportunities to work part time and full time than they had before.

Core Cities

Debate between Guy Opperman and Greg Clark

Thursday 8th December 2011 Commons Chamber

[Greg Clark]

I know that there has been an extensive debate, and great opposition in the area, about that issue, but it was settled. Rather than change administrative boundaries, which could bog down this process and waste time, our choice has been to respect existing administrative boundaries and, within that, transfer powers.

[Guy Opperman (Hexham) (Con)]

Will the Minister outline how his core cities plans will impact on business rates and investments to boost the economy of Newcastle and the north-east?

[Greg Clark]

The connection between business rates and investment should of course be a virtuous circle. It should be possible to invest in major infrastructure projects knowing that they will attract business, so establishing a clear connection between the activities and behaviour of the council and the rewards for that. The proposals that my right hon. Friend the Secretary of State for Communities and Local Government will make on the reform of business rates, combined with the access to single capital pots, will provide—for the first time—the ability as of right for cities to invest in their infrastructure, attract businesses and reap the rewards of doing so, and so enter that virtuous circle.