Interest Rate Swap Derivatives

Debate between Peter Luff and Mark Garnier

Thursday 24th October 2013 Commons Chamber

[Mark Garnier (Wyre Forest) (Con)]

May I start by adding my congratulations to my hon. Friend the Member for Aberconwy (Guto Bebb), who has not only been brave in what he has done on this matter, but has shown outstanding leadership in a technical, complex issue?

I wish to develop a couple of points, the first of which has started to resolve itself. I am talking about the big question of the linking of consequential loss to the technical redress. Clearly, the technical redress is people’s money—that is an agreed thing, and it is only right that it should be paid as soon as possible. The consequential loss was always a separate issue, and to have linked it was completely the wrong thing to have done. HSBC has broken ranks and RBS is following suit, and Martin Wheatley is now coming on board, saying that there should be no conditionality between the technical redress and the consequential losses claims. That is a good thing; it is excellent progress, and we can thank my hon. Friend for his work on that.

[Peter Luff (Mid Worcestershire) (Con)]

May I add my thanks to my hon. Friend the Member for Wyre Forest (Mark Garnier) for the leadership that he, too, is showing on this issue? Is it his experience, as a fellow Worcestershire MP, that this scandal, although apparently technical, is affecting well run, long-established and deeply respected real businesses across a wide range of sectors, and that the delay is going to kill businesses that our constituents value very deeply indeed?

[Mark Garnier]

My hon. Friend is absolutely right in what he says. The banks made an incredibly cynical effort to persuade people to enter into these contracts where, in many instances, they should not have done so. Sometimes it was the right thing to do, and I think that many businesses will agree that they just got it wrong, but we need to look after the smaller businesses that were simply mis-sold these products.