RBS

Lord Steel of Aikwood Excerpts

Thursday 11th June 2015 Lords Chamber

[Lord Ashton of Hyde]

My noble friend is correct. Of course the Government are prepared to take criticism if criticism is due, but in this case it is not. We must also remember that it was not this Government who paid the purchase price but a previous Government who had to deal with a crisis situation brought on by, among other things, the chaotic system of bank regulation. If this Government are prepared to deal with that in a way that can provide an overall profit to taxpayers, they should be—as I am sure they will be—duly given the praise they deserve from all parts of the House.

[Lord Steel of Aikwood (LD)]

My Lords, the Minister has said several times that it will take some years before the whole sell-off is complete. Will he confirm that, while the Government remain responsible for the administration of RBS, it is their intention to press ahead with the disengagement between the investment side and the retail side? I ask that because RBS has recently, in Scotland, announced the closure of some of its small branches. That runs against the whole history of the Royal Bank of Scotland. As my noble friend Lady Kramer said, the local branches under the authority of a branch manager used to be a positive help to small, local businesses. Unfortunately, that has long since gone, and I hope we can get it back.

[Lord Ashton of Hyde]

My Lords, the Government have legislated to implement the Vickers ring-fencing recommendations through the banking reform Act, and it is now up to regulators to finalise those detailed rules. The Government remain committed to the implementation of the ring-fencing regime by 2019. The ring-fencing of retail banking services will help to make sure that taxpayers are not on the hook again if the bank fails in future.