Lord Soames of Fletching
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Oral Answers to Questions
Lord Soames of Fletching Excerpts(11 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Prime Minister
First, I join the hon. Lady in what she said about the Tornado aircraft accident at RAF Lossiemouth. She is right that our thoughts should be with the friends, families and colleagues of those involved. The circumstances remain uncertain, but it was clearly a serious incident. The investigation is ongoing and more details will be released by the RAF in due course. It is a reminder of the risks that our service personnel take, not only when they are on active service, but when they are undergoing vital training for that service.
On food inflation, I would first make the point that inflation is now falling in our country, which is extremely good news. It is vital that the food prices in our shops are not too hard on people’s budgets, but the way to keep inflation down is to have a responsible monetary policy, which is what we have in our country.
Nicholas Soames (Mid Sussex) (Con)
Does my right hon. Friend agree that although the serious banking difficulties must be dealt with, it is vital that we retain the central importance of the City of London, and that any reforms must be proportionate and not damage such a brilliant asset for our country?
The Prime Minister
My right hon. Friend makes an important point. We have to get to the bottom of what has happened and we have to do so quickly. In doing that, we should bear in mind the remarks of Richard Lambert, who ran the CBI very successfully for many years, who carried out an investigation for the Labour party and whom I respect a great deal:
“the Libor scandal means that the required changes have to be tougher…that is the argument for a short, sharp inquiry. Going back to square one would, to put it mildly, be a serious mistake. The economy cannot recover in the absence of a stable banking system: nothing can be more urgent than that.”
That is not the only consideration. We must get to the truth, but we should listen to such expert opinions as well.