Bankers’ Bonuses and the Banking Industry

Julie Hilling Excerpts

Wednesday 25th February 2015 Commons Chamber

[Helen Goodman]

The hon. Gentleman is absolutely right: we are indeed a successful exporting region, but the Government are spending 520 times as much on the transport industry in London as they are in our region, which does not make sense. That is one reason why the Opposition want to set up a business investment bank.

[Julie Hilling (Bolton West) (Lab)]

Low wages are a problem not just in the north-east but in the north-west and across the country. A third of hourly paid workers in my constituency are paid less than the living wage, and 57% of part-time workers are paid less than the living wage, which means that they depend on other taxpayers to support them so that they can get to a point where they receive a living wage.

[Helen Goodman]

My hon. Friend makes a powerful point. That is why people watching the debate will find it absolutely incredible that millions of pounds have been paid to bankers in bonuses.

I should like to come back to the central points in the motion. Pay should be a reward for good performance, but we have seen a disconnect between bank performance and the pay of many senior executives and traders. We have discussed whether or not there is improved accountability in the banking system. At the Dispatch Box, the Minister tried to persuade us that that was all sorted and that everything was fine and good. However, the argument that it was right for the Government to resist the EU cap on bonuses because if bankers did not receive bonuses they would just receive higher pay reveals that accountability mechanisms have completely failed. If those mechanisms were working properly, shareholders would be able to prevent that abuse and something that is in effect a loophole. [Interruption.] I thought that the hon. Member for Warrington South (David Mowat) would intervene, as that was a point that he made.