Oral Answers to Questions

Debate between Jim McGovern and Greg Clark

Tuesday 12th March 2013 Commons Chamber

[Jim McGovern (Dundee West) (Lab)]

3. What progress he has made on supporting victims of interest rate swap mis-selling.

[The Financial Secretary to the Treasury (Greg Clark)]

On 31 January, the Financial Services Authority published the findings of the pilot review into interest rate swap mis-selling. The full review of 40,000 cases is now under way, and the FSA says it should be completed within six months. Small business organisations played a major role in exposing the scandal, so I can announce to the House that from today bodies representing consumers, including small businesses, will be able to apply to make super-complaints to the Financial Conduct Authority, giving them fast-track access to the regulator. That important power should help to ensure that any future misconduct is detected quickly and put right.

[Jim McGovern]

I thank the Minister for that answer. My constituent, Mr James Boyle, has a contract with Clydesdale bank, which seems to be excluded from the review. The main banks—RBS, HSBC, Barclays and Lloyds—are all included. Why are the Clydesdale bank, and my constituent, excluded from the review?

[Greg Clark]

I can confirm that the Clydesdale bank has now become part of the review, as have all the other principal banks. The hon. Gentleman has raised the case of his constituent with me before; even though the product was not within the review’s terms of reference, Clydesdale has agreed to consider it as part of the review.

Oral Answers to Questions

Debate between Jim McGovern and Greg Clark

Tuesday 11th December 2012 Commons Chamber

[Jim McGovern (Dundee West) (Lab)]

17. What steps he is taking to tackle interest rate swap mis-selling.

[The Financial Secretary to the Treasury (Greg Clark)]

The Government have been clear that the mis-selling of financial products is wrong, and we support the Financial Services Authority’s ongoing work to tackle the issue. The Treasury and the FSA have established monthly round-table discussions with the banks and the business groups to ensure that these concerns are addressed. We will continue to work with all parties involved to ensure that the banks provide the appropriate redress.

[Jim McGovern]

Constituents who have contacted me said that they are struggling and that they have been waiting for more than a year for the FSA review, during which time the banks have taken no remedial action whatever. What can the Minister do to help the victims of mis-selling now?

[Greg Clark]

I am glad the hon. Gentleman has asked me that question. I agree that customers who have been mis-sold products need quick redress, so I have pushed the FSA and it has agreed to implement a six-month maximum time scale for the banks to complete the review and provide the redress. I have also asked the banks and they have agreed to stop payments on these products for businesses facing financial difficulty.

Oral Answers to Questions

Debate between Jim McGovern and Greg Clark

Thursday 2nd February 2012 Commons Chamber

[Jim McGovern (Dundee West) (Lab)]

13. What recent discussions he has had with the Scottish Government on promoting job creation in Scotland.

[The Minister of State, Department for Business, Innovation and Skills (Greg Clark)]

Ministers in the Department have regular conversations with Scottish colleagues on areas of mutual interest. I have been invited to meet representatives of Scotland’s cities to discuss their contribution to the economy and I expect to do so shortly. Much of Britain’s future prosperity depends on our cities, including Dundee.

[Jim McGovern]

I thank the Minister for that response. Job creation is of paramount importance in my constituency in Dundee. Dundee has a highly skilled and highly educated work force, but despite that fact unemployment figures remain stubbornly high, particularly those for youth unemployment. There is an increasing feeling that that is the fault of both the coalition Government and the separatists in Edinburgh, who seem unwilling to use their powers to promote economic growth—they are too busy pointing their finger at other people for that. Will the Minister make an urgent assessment of how he, working with the Scottish Executive, can improve job creation throughout Scotland?

[Greg Clark]

I will, but it is fair to point out that, under the Labour Government, youth unemployment increased by 40%, so I think the hon. Gentleman is wrong to imply that that phenomenon has just established itself. He will know that the best and only way to create jobs is on the basis of a successful, stable economy. He will have seen the Institute for Fiscal Studies report yesterday that made it very clear that had the previous Government’s plans been in place, borrowing would have been at £76 billion in 2016-17 rather than £26 billion. That would have been disastrous for the credit rating of this country and the interest rates on which job creation depends.