Dan Boyle (Green Party)

The points on the need for a debate on the banking system have been well and regularly made in this House. I am sure the Leader will afford us an opportunity with regard to the Finance Bill but there is a need for a particular debate in addition to that, as many Members have stated. A number of factors have delayed this. One is the production of the PricewaterhouseCoopers report for the Government as to the state of the loan books in many of the financial institutions. Part of the problem with the banks is that the collateral they are claiming on many of their outstanding loans is probably falsified based on wildly exaggerated property values. The Government, and the wider body politic, must have such information before we have a proper debate. It is worth putting on record before we have such a debate that the United States has twice changed its policy on banking. The United Kingdom has capitalised several of its banks, including the Royal Bank of Scotland to the value of Stg£21 billion, but it has not achieved the desired effect of additional lending within the system. Regardless of when and how recapitalisation happens in our banking system, it must be properly directed in that there is additional lending and the reserves of the financial institutions are not held on to.

The additional factors must be brought about, including better governance in the financial institutions and the people responsible for bringing about the financial crisis being held to account and questioned. Major questions arise about whether they are the people who should help the financial sector get out of this situation. The wider debate must include all those components.

The Government was right in delaying making this decision until the last possible moment because these decisions have been made in other jurisdictions and they have not worked to date. There is no panacea or magic wand. If we are to get out of this situation the debate we have in the wider body politic must ensure that at least there is an indication that the response we take is the right approach.