Banking (Responsibility and Reform)

Mary Macleod Excerpts

Tuesday 7th February 2012 Commons Chamber

[Mr Marcus Jones (Nuneaton) (Con)]

I welcome the debate and want to discuss a number of issues that arise from the motion, but, having explored it, I think it contains a strong hint of political expediency and opportunism. To a degree, the Opposition seem to be ignoring part of the history of the UK Government between 1997 and 2010. That said, this is an extremely important and topical issue and the motion therefore deserves proper consideration and scrutiny.

My starting point would be to reflect on where we are today with some of the issues at hand and on what we are trying to achieve.

[Mary Macleod (Brentford and Isleworth) (Con)]

Although the reform of banking is important, does my hon. Friend agree that we have not heard today about the importance of the financial services sector and banking as a whole? The sector employs 1.1 million people and contributes 12% of the total tax take and 10% of UK GDP. We should be talking about how to create a strong and vibrant sector that helps to grow the UK economy.

[Mr Jones]

My hon. Friend makes a very important point and I hope that some of my comments later will enthuse her about my stance on that issue.

Not many people would disagree that we need to move from irresponsible banking practice to responsible but successful banking, from poor Government regulation to effective regulation, from bailing out the banks to getting taxpayers’ money back, from the state ownership of banks to putting them back into private ownership, and from the state guaranteeing banks to ensuring that they stand on their own two feet and are not too big to fail. We need to draw some important distinctions when we consider such matters. There is a distinction between taxpayer-owned banks and private banks and we also need to take into account the taxpayer guarantee. When we consider irresponsible bankers—who now seem to be epitomised by Fred Goodwin, who should not be singled out but seems to be taking the brunt of the blame for all the irresponsibility in the banking industry—there should be a distinction between their type of banking and the more responsible banking that many are trying to promote.

One person who was brought in to try to promote more responsible banking and to get RBS back on its feet was Stephen Hester. He came in and took on a job, and although we might all agree or disagree with the definition of the success that he was tasked with bringing about, the fact is that he was given that definition—I think by the Labour party, when it was in government—and now Labour seems to want to move the goalposts and change the definition of success or failure within his remit.