Industry (Government Support)

Debate between Vince Cable and Michael McCann

Wednesday 16th June 2010 Commons Chamber

[Vince Cable]

I am happy to come to RDAs shortly. We have a view on them, and I have been asked specific questions by the right hon. Member for Wolverhampton South East about them. The hon. Gentleman will also have heard me speak specifically about the north-west at Business, Innovation and Skills questions a couple of weeks ago—but I shall return to that.

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

The right hon. Gentleman said that, when on the Opposition Benches, he urged the Government to take action against the banks. What were his friends in the Conservative party asking for back then?

[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.