Oral Answers to Questions

Oliver Colvile Excerpts

Wednesday 18th May 2011 Commons Chamber

[The Prime Minister]

Obviously, breaking the ministerial code is an extremely serious offence. I know that the hon. Gentleman has asked questions before about the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), and let me be clear that the Employment Minister played no part in the decision-making process to award Work programme contracts. I want to make that point clear to the hon. Gentleman, as he has asked me the question.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

Q10. May I echo the tribute that my right hon. Friend paid to Nigel Mead, the young Royal Marine who was serving with 3 Commando Brigade, which is based in my constituency?Given the recent inflation figures and the loose monetary conditions that contributed to the causes of the credit crunch, should my right hon. Friend now lead a fundamental debate reviewing the inflation target, and the operation and workings of the Monetary Policy Committee?

[The Prime Minister]

The point that I would make to my hon. Friend is that one of the fundamental causes of the problems during the credit crunch was the poor regulation of our banking system and credit. We have taken steps to put that right by putting the Bank of England back at the pinnacle of that system, after the failure of the system put in place by the Labour party. On inflation, I strongly support monetary policy being independent and established by the Bank of England. I do not want to go back to the bad old days of the Treasury setting interest rates. I think it is better to have that power vested in the Monetary Policy Committee of the Bank of England.