Oral Answers to Questions

Liam Fox Excerpts

Wednesday 16th October 2013 Commons Chamber

[The Prime Minister]

Let me first commend the hon. Gentleman for the work that he does in relation to payday loans and the need for tough regulation. I think it absolutely right for us to look at the issue, and to ensure that we get things right.

Earlier this month, the Government published two reports which showed that the problems in the payday market persist, and that consumers continue to suffer. As a result, the Financial Conduct Authority has made a series of proposals, all of them worth while. They include proposals to use powers to ban loans and advertisements of which it does not approve, to ensure that lenders cannot roll over loans more than twice, and to limit the number of attempts that a payday lender can make to take money out of accounts.

We are still considering the issue of a cap, and I do not think we should rule it out, although we must bear in mind what has been established in other countries, and by our own research, about whether a cap would prove effective. It is absolutely right for us to regulate this area properly.

[Dr Liam Fox (North Somerset) (Con)]

May we have a full and transparent assessment of whether The Guardian’s involvement in the Snowden affair has damaged Britain’s national security? Does my right hon. Friend agree that it is bizarre that from some the hacking of a celebrity phone demands a prosecution, whereas leaving the British people and their security personnel more vulnerable is seen as opening a debate?

[The Prime Minister]

I commend my right hon. Friend for raising the issue. I think the plain fact is that what has happened has damaged national security, and in many ways The Guardian itself admitted that when, having been asked politely by my national security adviser and Cabinet Secretary to destroy the files that it had, it went ahead and destroyed those files. It knows that what it is dealing with is dangerous for national security. I think that it is up to Select Committees in the House to examine the issue if they wish to do so, and to make further recommendations.