Industry (Government Support)

Richard Burden Excerpts

Wednesday 16th June 2010 Commons Chamber

[Vince Cable]

The Chancellor of the Exchequer made a very good statement earlier, setting up the commission that will look at the structure of banking. Indeed, we are working together on improving the very poor performance of the banking sector in terms of credit to small and medium-sized lending. The record of the Labour party is terrible in that respect, and we will improve on it.

It is clear that the last Government had an industrial policy. I cede that point. We have to go back to the seminal moment when the former Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath, made one of his famous factory visits—to the headquarters of Lehman Brothers in London—and announced:

“I would like to pay tribute to the contribution you and your company make to the prosperity of Britain”.

The consequences of that policy are with us today, in the costs of the collapse, the recession that followed and the enormous problems that we have inherited. That was the industrial policy; that was the imbalance of which hon. Members complain.

[Richard Burden (Birmingham, Northfield) (Lab)]

I welcome the activist approach towards banks that the Secretary of State is outlining. He will be aware that the House has debated the situation of former workers at Longbridge who are still waiting for money from a trust fund promised to them in 2005. At the moment, that seems to be being held up by an argument between Lloyds Banking Group and the Phoenix Four. Will he get involved to try to ensure that they finally receive the money that they deserve and which they were promised so long ago?

[Vince Cable]

I was in Birmingham last week, and people affected by that problem have approached me—indeed, the city council also raised the matter with me—and I have asked for it to be investigated. It is a complex legal problem, but clearly it needs looking at.

I shall proceed to the second statement in the motion with which we agree. The Labour spokesman was explicit, forthcoming and realistic about cuts. The motion reads:

“That this House notes the need for a clear deficit reduction plan”.

It is now going to get one, because on Monday we launched the Office for Budget Responsibility. We now have believable and independent growth numbers on which to construct a budget strategy, and next week the Budget will spell that out in more detail.