Bankers’ Bonuses and the Banking Industry
Debate between Helen Goodman and Ian Swales(9 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Helen Goodman
The hon. Gentleman, if I may say so, makes a fair point. One of the regrets of Opposition Members is that not all the recommendations of the Parliamentary Commission on Banking Standards have been implemented. The weakness of the arrangements set up by the Government was illustrated only this week in the statement by Mr Gulliver, who now heads up HSBC. He said that he could not possibly be expected to know what his many thousands of staff were doing. If we are to have a proper accountability mechanism looking from the outside in at what the banks are doing, we need proper internal management systems; otherwise, the whole thing becomes meaningless. Mr Gulliver is therefore hoist by his own petard.
Ian Swales
I used to work in a large global organisation, and does the hon. Lady accept that part of the problem is culture? It is true that someone cannot be expected to know what every employee is doing at their desk at any moment, but if people do not have the right culture down the management chain those sorts of things happen.
Helen Goodman
That is common sense, and that is why the right culture was not encouraged when the Chancellor toddled off to Brussels to defend high bonuses. That did not engender the kind of attitude that we want to see.
Budget (North-East)
Debate between Helen Goodman and Ian Swales(12 years ago)
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Ian Swales
I am sure that the hon. Gentleman has his statistics correct.
I will go on to talk about high-rate tax. The Government have cut from £250,000 to £50,000 the amount of pension contribution that can be claimed against tax. They have put a new limit on reliefs, raised capital gains tax from 18% to 28%, put a new tax on expensive houses and clamped down on tax avoidance. Labour has opposed those measures and charged the rich less in tax.
Let us talk about business. As soon as the Budget was delivered, Glaxo announced £500 million of investment, including a new factory in Cumbria and new manufacturing facilities at Barnard Castle, Teesdale. That was a direct result of the Budget provisions on pharmaceutical patents. As AstraZeneca has also shown, that will lead to huge investment in—
Helen Goodman
The key factor was the patent box changes, which were initiated by the Labour Government in 2010.
Ian Swales
I am sure the Minister will respond to that.
Of course our region needs specific help. I welcome the extra £1 billion for the regional growth fund, which has already helped 93 companies in the north-east and is targeted specifically at regions such as ours. Last week’s announcement of help for up to 1,000 jobs in Wallsend in the offshore wind industry was especially welcome.
These occasions usually include a lament from the Opposition for the RDA. However, I shed few tears for an organisation that, in the two years before the general election, spent £148 million on 96 projects in which the directors had to declare an interest, spent nearly £400,000 on gagging orders for 12 staff, and, according to Experian, left Hartlepool, Middlesbrough, and Redcar and Cleveland as the three areas of the country, out of 324, least able to cope with austerity.