Banking Reform

Lord Higgins Excerpts

Thursday 17th June 2010 Lords Chamber

[Lord Sassoon]

I am grateful to the noble Lord, Lord Haskel, for raising this rather important question. Let me stress absolutely clearly that the Monetary Policy Committee will continue just as now, with an unchanged remit. It will have, if the Chancellor does not change the remit, the 2 per cent inflation target, and nothing in that respect will change.

[Lord Higgins]

Could my noble friend clarify the position regarding ministerial responsibility? As I understand it, this Statement was made in another place by the Financial Secretary to the Treasury—an office which I once held a very long while ago. Is he now responsible for the banking side, and how has the situation changed from that under the previous Government, who created a financial secretary for banking? Will my noble friend the Minister assume that role? Could he clarify the overall position? The position was, of course, previously filled by the noble Lord, Lord Myners.

[Lord Sassoon]

I am grateful to my noble friend Lord Higgins for asking that question. Since I carry the newly-minted title of Commercial Secretary, I can try and explain that my responsibilities straddle both the financial services sector and wider business interests. My friend in the other place, the Financial Secretary to the Treasury, bears the primary responsibility in most areas of financial services policy. If my noble friend would like to look at the Treasury website, he will see a much clearer explanation of the split of ministerial responsibilities. I would be happy to send him a copy.