Bank of England (Appointment of Governor) Bill

Debate between John McDonnell and Mike Freer

Friday 6th July 2012 Commons Chamber

[John McDonnell]

That is an incredibly constructive proposal, and I hope the Minister heard it. There are other ways of approaching this matter and we should be open to considering them. Yesterday, the Government entrusted the hon. Gentleman with a major inquiry—the inquiry Committee will comprise members of the Treasury Committee and Members of the other House. If the Government have the confidence in Treasury Committee members to undertake that inquiry, it should have the confidence in their having a decisive role in the appointment of a new Governor of the Bank of England. I therefore welcome the hon. Gentleman’s constructive comments.

May I thank Kate Emms, the Clerk, and Gordon Nardell QC for their assistance in drafting the Bill and the explanatory notes? I am extremely grateful for their assistance. The Bill amends the Bank of England Act 1998 to give effect exactly to the recommendation of the Treasury Committee from its report of October 2011 that the appointment of the Governor should be subject to the approval of the Treasury Committee.

Between the time of choosing the appointment of the Governor of the Bank of England as the subject of my private Member’s Bill and debating it, the world has changed somewhat. Last week’s revelations about the role of Barclays bank—and, more than likely, others—in the LIBOR scandal have given the Bill a new context, and there is a new significance in the appointment of the Governor of the Bank of England. Mervyn King will retire in the next year, and the new Governor will play a pivotal role in what, it is increasingly clear, will of necessity be a radical reform and reconstruction of our financial system.

[Mike Freer (Finchley and Golders Green) (Con)]

From the debate yesterday, the Opposition seem to hold the view that the Treasury Committee is not qualified to investigate banking and banking reform, yet the hon. Gentleman today argues that the Committee is qualified to appoint the Governor.

[John McDonnell]

I am pleased that consensus was eventually reached yesterday and that the Chair of the Treasury Committee will now be able to perform his role in that inquiry. The Government’s confidence in the Treasury Committee Chair and its members in respect of that inquiry contrasts with their lack of confidence in respect of allowing the Committee a decisive role in the appointment of the Governor.

It is increasingly clear that the new Governor will have significant responsibility, and it is becoming obvious that we need root-and-branch reform of our financial services and our banking system. Therefore, whatever recommendations come out of the various inquiries, and especially the inquiry that was established yesterday, much of the work of implementing reforms will fall on the shoulders of the new Governor.

London Local Authorities Bill [Lords] (By Order)

Debate between John McDonnell and Mike Freer

Wednesday 13th October 2010 Commons Chamber

[Mike Freer]

I cannot speak for the Secretary of State or the former Secretary of State, but perhaps the Minister wishes to give us some insight into the Department’s view. I am sorry to land him in it, but I cannot speak for him. I understand the concerns, but having a power of entry that is restricted to named individuals or senior members of the housing team is not unreasonable if a tenant is at risk.

I point out to my hon. Friend the Member for Christchurch (Mr Chope) the fact that many HMOs are now operated by offshore companies or overseas owners. Therefore, tracking people down and serving a notice can be particularly difficult. This proposal would allow housing officers to gain access in circumstances where they might be frustrated by an absentee landlord. I am sure that the specific issue and the concerns expressed by the former Secretary of State can be addressed if the Bill reaches Committee.

[John McDonnell (Hayes and Harlington) (Lab)]

The hon. Gentleman has raised an important issue. This is the position: since 2004, the problems of HMOs, particularly in London, have magnified significantly, as every local authority is reporting. The view in 2004 was that certain powers were not required, but local authorities have now made it clear that they are certainly required, as reflected by many constituency MPs. The House must remember that the London Local Authorities Act 2004 took some powers away from local authorities. If we had those powers now, we could use them in these instances.

[Mike Freer]

I am grateful to the hon. Gentleman for that intervention.