Oral Answers to Questions

William Bain Excerpts

Thursday 27th October 2011 Commons Chamber

[Mr Davey]

I again pay tribute to my hon. Friend, because he has been a stalwart campaigner for that change. I am delighted that we were able to publish the draft Groceries Code Adjudicator Bill on 24 May, and that the Business, Innovation and Skills Committee’s report on it has welcomed our proposals. He will know that the proposal is unique, because it allows anonymous claims to be made to the adjudicator and for reports, of which the adjudicator will be able to take note, to be put into the public domain.

[Mr William Bain (Glasgow North East) (Lab)]

The Bank of England’s own data released last week indicate that lending by banks to small businesses fell by £2.5 billion in the three months to August. Was not the Secretary of State right to admit at last that the economy is in a far weaker state under this Government than it ever was in the last year under Labour?

[Vince Cable]

That certainly is not the case, but the hon. Gentleman has a perfectly valid point in relation to bank lending. That is absolutely the case, and, as a result of the agreement that we have reached with the banks, they have—certainly in the first two quarters—achieved the gross lending objectives that we set them, but there is a lot more to do. Surveys show that a shortage of credit is a serious problem, and we have to continue to work with the banks and, where necessary, to require them to make credit available to the economy.