Oral Answers to Questions

Debate between Natascha Engel and Vince Cable

Thursday 20th December 2012 Commons Chamber

[Vince Cable]

I have already been working closely with the Bully-Banks group and the Federation of Small Businesses, which is deeply concerned about the problem. The scale of the scandal is becoming larger by the day, as more cases are uncovered. It is clear that the banks—or some of them—behaved extremely badly in the sale of such products. I am not fully satisfied that they are yet conforming with the spirit of the FSA’s advice on the matter; indeed, yesterday I met the chairman of the new regulatory authority to discuss with him how we can support small business more actively.

[Natascha Engel (North East Derbyshire) (Lab)]

Further to that point, the banks and the FSA are dragging their feet, making a decision and then not making a decision on interest rate swaps. Meanwhile, perfectly viable small and medium-sized businesses are going to the wall. What is the Secretary of State doing to ensure that the banks and the FSA make a decision quickly, so that businesses do not go under unnecessarily?

[Vince Cable]

In relation to the speed of the process, I was assured yesterday that the FSA will complete early in the new year a pilot it has undertaken to identify the range of companies that might be assisted. That will then be rolled out to all companies. There is a genuine problem of definition. Some companies are sophisticated and took on these swaps quite conscious of the risks involved; others were mis-sold them. The borderline between the two is not absolutely clear, but I agree with the hon. Lady’s general proposition—a view that other Members share—that a lot of small businesses have been severely mis-sold products and need to be assisted.

Oral Answers to Questions

Debate between Natascha Engel and Vince Cable

Thursday 3rd June 2010 Commons Chamber

[Vince Cable]

I look forward to keeping the House informed of progress. One of my criticisms of the last Government, which I made from the Opposition Benches, was that despite their successful intervention in the latter part of 2008, the banks then ran rings around them. The lending agreements were never enforced, and the semi-nationalised banks simply did not act on the instructions that they were given. We in this Government intend to do a lot better.

[Natascha Engel (North East Derbyshire) (Lab)]

On the coalition Government’s rather simplistic policy on regulation of “one in, one out”, will the Minister confirm that the one regulation coming in will be cost-equivalent to the one going out? If so, which regulation will go out when the agency workers directive comes in?