RBS Closures (Argyll and Bute)
Debate between John Glen and Ian Blackford(6 years, 3 months ago)
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John Glen
I will come on to a number of practical steps that I think can challenge the banks’ logic and help hon. Members across the House.
We have to acknowledge the change in the way that we use banks, and the fact that banks will adapt to reflect the shift in consumer patterns. That means making tough decisions, such as modernising their services to maintain profitability. I go back to what I said two weeks ago on this spot: the decision is not for the Government, and it is important that I explain why. I acknowledge the point that has been made about Stephen Hester, but there is a material difference between the Government, as the largest shareholder, being consulted on who the chief executive is, and the day-to-day operational decisions made branch by branch. There is a reasonable difference in the level of involvement. Each bank’s branch strategy, including whether to open or close individual branches, is for the management of that bank to determine. The Government rightly do not intervene in those commercial decisions in this bank or in any other bank.
John Glen
I will not take an intervention, because I need to make some progress. Likewise, the Government do not manage the RBS Group; that is headed by its own board, which is responsible for strategic direction and management decisions. By its own volition, RBS has announced a number of branch closures in line with its commercial strategy. Obviously, banks will keep a number of factors in balance when they make these decisions: customer interests, market competition and other commercial considerations. The decisions are theirs to take, but they are also theirs to defend.
I say to the hon. Gentleman who secured the debate that by bringing the matter to the attention of the House again, he is doing a very good job of challenging the bank to justify the decisions it makes. It is for the bank to do that. Indeed, two RBS executives gave evidence to the Scottish Affairs Committee on this very matter last week, and they were pressed on their rationale. I have read the transcript, and they made it clear that customer behaviour is changing and bank branch networks logically are changing to reflect that.