Oral Answers to Questions

Phil Wilson Excerpts

Tuesday 21st December 2010 Commons Chamber

[Danny Alexander]

I am bound to say that that is yet another example of a saving that is necessary to tackle the terrible inheritance left by the previous Government, which Opposition Members now seem to be opposing. They also oppose every single cut, yet do not recognise that the consequence of such an approach would be to put this country back in the economic mess that they caused.

[Phil Wilson (Sedgefield) (Lab)]

7. What recent steps he has taken to reduce bonuses paid by banks to their staff.

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The Government have taken decisive action to tackle unacceptable bank bonuses. The Financial Services Authority has revised its remuneration code and new rules will be in place by 1 January 2011. In addition, the Government have introduced a levy that incentivises less risky banking activities, and we will continue to investigate the cost and benefits of a financial activities tax. In combination, those and other measures will ensure that remuneration is consistent with effective risk management.

[Phil Wilson]

The Minister will be aware that the Business Secretary has said that a big argument is going on in Government about the banks. He says that he wants a very tough approach but

“our Conservative friends don’t want to do that”.

Is the Business Secretary right?

[Mr Hoban]

The Government are totally united about the fact that we want banks to play their full role in the economic recovery by lending to businesses and recognising their wider social responsibilities.