Business of the House

Philip Davies Excerpts

Thursday 27th February 2014 Commons Chamber

[Philip Davies (Shipley) (Con)]

May we have a debate on the proper role of Governments and shareholders in the setting of pay and bonuses in the private sector? We seem to be in a ridiculous situation where the Government want to lecture profitable companies in which they have no shareholding about their pay and bonuses, and yet they equally appear to be sitting idly by and allowing a company in which they are a majority shareholder to pay more than £500 million of bonuses, despite the fact that the company is costing the taxpayer more than £8 billion a year?

[Mr Lansley]

I will, of course, talk to my hon. Friends at the Business, Innovation and Skills Department. However, I have to say to my hon. Friend that I do not think we are lecturing companies. We are being clear about what we regard as social responsibility, and that companies have a responsibility that extends not only to their shareholders and employees but to the wider society. All companies should recognise that. Where the Government have a substantial shareholding in a company, of course we should use that shareholding similarly—in a socially responsible way. We are aiming for, and have seen, a substantial reduction in bonuses in the banking sector, which I know is occurring in those companies in which the Government have a shareholding.