Banking (Responsibility and Reform)

Nicholas Dakin Excerpts

Tuesday 7th February 2012 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

I had not intended to speak in the debate, but Lloyds TSB has today announced 300 job losses in Scunthorpe, as part of 1,000 job losses across the country. That is on top of the 30,000 job losses that have been announced by that organisation over the past three years. I want to talk about the importance of the banking sector in our communities as a provider of jobs and services at local level. Too often, the debate is about the banks and bankers at national level, and that has been well covered in today’s debate, but it is important that we also remember the value of the banking sector within the communities that we represent. Another case in point in my constituency is the announcement by HSBC that it is to close its branch at Kirton-in-Lindsey. It is the only branch for 9 miles, and its closure will have a significant impact on the way in which that community manages its business.

The hon. Member for Halesowen and Rowley Regis (James Morris) made a thoughtful and insightful contribution to the debate. He drew on his experience of the disconnect between the banks, on the one hand, and the small and medium-sized enterprises and the communities of which they are a part, on the other. He said that it was possible to be anti-bonus but pro-business. There is unity across the House on that point. We need a better and more responsible capitalism that better serves the people of this country. Excessive pay and rewards for failure are bad for shareholders, bad for the economy, bad for society and bad for business. I hope that the people listening to the debate, in the banking community and in the communities that we serve, will recognise the importance of banking as a provider of services and jobs in our communities, and as an engine of the growth of this proud nation.