Professional Standards in the Banking Industry

Nadhim Zahawi Excerpts

Thursday 5th July 2012 Commons Chamber

[Ed Balls]

As the hon. Gentleman will know—because I said this yesterday—at no point at any time when I was an adviser or City Minister was it suggested to me by the Financial Services Authority, the Treasury, the Bank of England, or anyone in the House that there was any reason to doubt the integrity of the LIBOR market. The facts came to light only subsequently, and they are now being properly investigated. I hope that that serves as a full answer to the hon. Gentleman.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

This is a very important point, which goes to the heart of the issue of trust. Can the right hon. Gentleman confirm that, as far as he knows, no other Minister at either No. 10 or the Treasury spoke to the Bank of England about LIBOR during his time in office?

[Ed Balls]

Here we go again, Mr Deputy Speaker. The reason we advocate an open public inquiry, judge-led, is precisely in order to get to the bottom of all these things.

Given the direction in which the debate is now going, before I set out the arguments before us today let me just say this to the Chancellor of the Exchequer. The cheap, partisan and desperate way in which he and his aides have conducted themselves in recent days does him no good; it demeans the office that he holds; and, most important, it makes it harder for us to achieve the lasting consensus that we need.

I have to say that what we have seen in the last few days makes the case more eloquently than any speech that I could deliver, or any speech that any of us could deliver, for an independent, arm’s length public inquiry to elevate this debate above the deeply partisan tone set by the Chancellor and his colleagues. As for the false personal accusations that the Chancellor has made against me, not on the basis of any evidence but purely in the hope of political advantage, he said yesterday—[Interruption.] Members should listen to this.

The Chancellor said yesterday that I was “clearly involved” in communicating with the Bank of England and Barclays in October 2008 concerning the LIBOR market, a claim that his aides repeat. He made that utterly baseless accusation before any proper investigation, before any witnesses had been called and before any papers had been examined. He did not say it to an inquiry; he said it yesterday to The Spectator. If he has any evidence, he should produce it now, in the House. [Interruption.] If he will not—[Interruption.]

--- Later in debate ---

[Mr Osborne]

The idea that I am going to take lessons in integrity from a man who smeared his way through 13 years of Labour government and who half the people who served with him think was a disgrace in his post is another thing entirely. Let him redeem himself today by not blocking an inquiry into what happened under the last Government. Take part in the inquiry. You are not prepared to do that.

[Nadhim Zahawi]

The shadow Chancellor is creating a smokescreen because the evidence is clear: Ministers in the previous Administration knew of a conversation that took place between Paul Tucker and Bob Diamond. They need to come clean—whether it is shadow Chancellor or the Leader of the Opposition—and answer the question: which Ministers knew about that conversation?

[Mr Osborne]

My hon. Friend is right that throughout this debate and over the past two days, not a single Labour Minister from the previous Government has come forward and told us who was involved. Who was involved? Answer the questions. One of you must know. Hands up, come on. One of you must know who was involved.