Matt Hancock
Main Page: Matt Hancock (Independent - West Suffolk)Department Debates - View all Matt Hancock's debates with the HM Treasury
(12 years, 10 months ago)
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Chris Evans
No, he did not. This debate would be far more honest if we said that it was the banks. This is like the sword of Damocles hanging over our heads. The banking sector is too large. We have too many large banks. I welcome some of what the Chancellor has said about this—he said that there needs to be ring-fencing between the banks’ retail and investment operations—but if we do not break those banks up and just one of the big six goes under, the economy will be back in trouble. However, we have sent the banks a message that we would send to no other business. We have said to them, “What you’re doing is okay. However you run your businesses, we will bail you out.”
Matthew Hancock
I am listening to the hon. Gentleman trying to blame everything on the banks. The question is, who designed the regulation of the banks?
Chris Evans
We have heard about the FSA, and we have admitted that that did not work, but before that, there was self-regulation. There was no attempt to tie them down, and there is still no such attempt. When the Minister responds to the debate, we need to hear from her what the future of the banks will be. We need to know that.
This is the problem that I have with the entire debate. People say, “It was the Labour Government overspending”, but faced with the same problem of the banks going under, what would the present Chancellor have done? He would have done one of two things. Since his road to Damascus experience, he wants to cut everything, and following that logic, he would have done nothing. The economy would have gone under, and everyone with a mortgage would have been written off. Alternatively, bearing in mind his mates in the City, I suspect that he would have bailed the banks out just like we did. He would have been faced with a deficit, just like we were. We never hear anything about the future of those banks from Members on the Government Benches.
Geraint Davies
The situation there is that the Germans are very focused on ensuring that their economy is focused on the growth of the developing economies of China and India. Obviously, there is a difference in the complexion of the German health service. The real focus is on generating export-driven growth, and that is what has happened.
Geraint Davies
No, I will not.
Let me give an example. Every business in Germany is tied into a chamber of commerce, and every chamber of commerce is required to provide tailor-made apprenticeships and training to focus on industrial growth. We do not have that. There is a lot to learn, and we should go out and learn it. We should focus on growth and stop making these ridiculous cuts.
