HSBC: Lord Green of Hurstpierpoint

Debate between Lord Strathclyde and Lord Kinnock

Monday 23rd July 2012 Lords Chamber

[Lord Strathclyde]

My Lords, with all his experience and knowledge—not just as head of the Civil Service and Cabinet Secretary but having had a more commercial career since he left—the noble Lord, Lord Butler of Brockwell, has brought a lot of wisdom and good sense to this debate, on which we should all reflect.

[Lord Kinnock]

My Lords, since the Leader of the House has told us that the work of the noble Lord, Lord Green, is of benefit to the United Kingdom’s profile—the words he just used—does he think that the accountability of an individual in a very senior position in government or business ceases when that individual changes post? Does he not think that it would benefit the UK’s profile to ensure that a Minister rigorously adheres to the wording of the Ministerial Code, as just spelt out by my noble friend? Further, does he not think that the ethics of business require that a Minister who has the opportunity and the right to come to this House to explain themselves should do so?

[Lord Strathclyde]

My Lords, I do not disagree at all with what the noble Lord says about the ethics of the industry in which my noble friend was involved. In fact, only last week, this House set up a special Joint Select Committee to look at ethics and many other practices in the banking industry. Surely that is the point. If a Select Committee of this House or another place wishes to ask my noble friend questions, it should do so. My purpose is to reflect on my noble friend’s role in government and to answer on behalf of Her Majesty’s Government.

G20 Summit

Debate between Lord Strathclyde and Lord Kinnock

Monday 25th June 2012 Lords Chamber

[Lord Kinnock]

After £325 billion worth of quantitative easing and consecutive quarters of zero growth, is it not evident that the monetary activism of which the Prime Minister spoke earlier cannot get any traction without substantial fiscal stimulus? Therefore, why do the Government continue to resist the proposition that they should establish a national investment bank that through the use of public funds will attract private investment in order to stimulate growth, employment and development in this undergrowing economy? Secondly, when it is clear, as the Prime Minister said, that deficit reduction is not an alternative to growth but is contingent on growth, why do the Government continue to advocate expansionist growth policies in the eurozone but firmly resist exactly the same approach in the United Kingdom, which sorely needs those policies? Is it not clear that the Government’s maxim of securing growth through austerity is oxymoron economics?

[Lord Strathclyde]

My Lords, I do not agree with what the noble Lord, Lord Kinnock, has said. Neither do I accept his characterisation of what we are doing in the United Kingdom and what we are exhorting our colleagues in the eurozone to do. I take his point about a national investment bank in order to try to encourage growth, but our solution has always been to try to encourage the private sector—and private sector banks—to have the confidence to invest in British business.

The UK economy is recovering from the deepest recession in living memory. It was even deeper than was previously thought: over 7% was wiped off the economy. Inevitably, recovery will be choppy, and by historical standards subdued, because household business and government debt rose unsustainably. Naturally, the eurozone crisis is making the recovery even more difficult.

The main point is that we have managed to maintain the lowest interest rates that this country has seen in modern times; a one percentage point rise in our interest rates today would add £10 billion to family mortgage bills alone. You only have to look at the interest rates in Spain, Italy and of course in Greece, to see just how much better off we are today than those nations. Despite having a deficit similar in size to that of Greece, the UK has interest rates at historic lows, similar to those in Germany; France’s interest rates are more than 50% higher, and Italy’s interest rates more than three and a half times higher. We can have a philosophical debate—even an economic debate—as to whether or not austerity and growth go together, but our firm view is that they can.

Parliamentary Voting System and Constituencies Bill

Debate between Lord Strathclyde and Lord Kinnock

Tuesday 8th February 2011 Lords Chamber

[Lord Strathclyde]

My Lords, there is no estimate of the increase in costs. I shall answer that point when I get to the point about workload.

[Lord Kinnock]

On the basis that the Government want to do more with less, can the noble Lord suggest to me the reason for a very major increase in the size of this House which—setting apart the change in the allowances system—is hardly doing more for less? Secondly, as the Prime Minister was quoted earlier, perhaps I may bring the noble Lord more up to date and mention the Conservative Party manifesto and the proposed 10 per cent cut, which would take the size of the House of Commons down to 585. In those circumstances, we would have had a logical, electoral-based number to debate. In place of that and the Liberal alternative, we have the neat figure of 600. Would we not be getting more for less if we had 585, as the noble Lord’s party promised?

[Lord Strathclyde]

We certainly would. Ten per cent is also a nice round figure and very convenient for working out what the reduction would have been. However, we did not win the election with the majority that we wished. We had to reach an agreement with our coalition partners and, on that basis, we came to the figure of 600.