Royal Bank of Scotland

Philip Hollobone Excerpts

Thursday 13th June 2013 Commons Chamber

[Sajid Javid]

If I remember correctly, the hon. Gentleman was a member of the previous Government, not just a Government Back Bencher, so he was involved in decision making and presumably supported the action that the then Government took on banking regulation. I wonder whether he held those views back in 2007, just before the collapse of the British banking system, when the then Chancellor said in his Mansion House speech:

“I congratulate you Lord Mayor and the City of London on these remarkable achievements, an era that history will record as the beginning of a new golden age for the City of London.”

[Mr Philip Hollobone (Kettering) (Con)]

Will the Economic Secretary reconfirm that Stephen Hester’s exit package, while undoubtedly generous, is just one third of the amount that he could have got under the contract signed by the last Labour Government? Also, given that Her Majesty’s Government hold, on behalf of all our constituents, 80% of the bank, will he ensure that the terms of the contract for the new chief executive reflect Stephen Hester’s actual remuneration and not the theoretical remuneration put in place by the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown)?

[Sajid Javid]

My hon. Friend makes a good point. I can confirm that, under the terms to which the previous Government signed up in 2008, when Stephen Hester was appointed, his exit package could have been three times greater. That again highlights the Labour party’s utter confusion on this issue.