Deficit Reduction

Lord Roberts of Conwy Excerpts

Tuesday 18th January 2011 Lords Chamber

[Lord Sassoon]

Well, my Lords, it has come to a pretty pass when the noble Lord characterises the investment in the banks as some sort of voluntary investment to make a return. It was necessary to bail out and save the British economy because the previous model of financial regulation had completely failed. Under the stewardship of the new Government, we will do our best to get back the investment, and hopefully more, that was necessarily put in by the previous Government. That is what we are doing.

[Lord Roberts of Conwy]

My Lords, would my noble Friend confirm that Royal Bank of Scotland and Lloyds banking groups have considerable liabilities, which will be added to the country’s net debt in due course?

[Lord Sassoon]

My Lords, as my noble friend says, there are liabilities as well as assets on the Government’s balance sheet as a result of the bailout of the banks. It will be a long process, in which the management of those banks is taking the leadership, to restore them to health, both for the benefit of the shareholders, including the nation, but also to ensure that they can continue to lend money to the businesses of this country.