RBS crash prompts call for enquiry into future of banking
January 20, 2009 4:15 PM
Originally published by Scottish Liberal Democrats
Originally published by Scottish Liberal Democrats
Following the collapse of RBS's share price, Tavish Scott, leader of the Liberal Democrats in Scotland has urged the Chairman of the Treasury Select Committee to reconsider the Liberal Democrats' call for a joint enquiry into the future of Scottish banking.
When it was reported that HBOS would be taken over by Lloyds TSB last autumn with the probable loss of thousands of Scottish banking jobs, Mr Scott wrote to the Labour Chairman of the Treasury Select Committee, John McFall MP, asking him to chair jointly such an enquiry with the Scottish Parliament's Economy Committee.
Mr McFall declined.
Commenting, Mr Scott said:
"The collapse of RBS's share price has shaken the already wobbly foundations of Scottish banking. We need to know how this was allowed to happen and why one of Scotland's most successful public companies is about to produce a record profit loss.
"I was disappointed that Labour's Chairman of the Treasury Select Committee, John McFall, did not agree to an enquiry into the future of Scottish banking after the takeover bid for HBOS and the probable loss of thousands of jobs were announced.
"He now needs to reconsider and convene an urgent enquiry into the future of Scottish banking.
"I'm delighted that Labour MSPs are joining the call for such an enquiry. They should now be trying to persuade their own colleagues in Westminster to come on board. The enquiry would also need to look into why Labour's £37 billion banking rescue package didn't work."
Ends.
Notes to Editors:
Mr Scott wrote to the Rt Hon John McFall MP on 24 September 2008. The text of his letter is below:
Dear John,
I know that you are acutely aware of the concern that there is in Scotland at the future of banking following the crisis at HBOS last week.
Tens of thousands of people employed in the industry and millions who rely on banking services in every High Street are very concerned.
My purpose in writing to you is to ask if you would consider convening jointly with the Scottish Parliament an inquiry into the failures that have led to this crisis and the impacts that it will have on business and prosperity for companies and individuals all across Scotland.
The local economic impact that this crisis can potentially invoke and the challenge of the future of the Bank of Scotland as an institution have reserved powers and influences but devolved consequences.
That is why there is merit in parliamentarians coming together to learn the lessons and make recommendations.
You may have already considered this before. Perhaps on this issue, beyond all others, people in Scotland will be keen to see the two parliaments to work together.
The Treasury Select Committee has considerable influence and very recent experience of an investigation into the banking sector.
I have written in similar terms to Iain Smith, Convener of the Scottish Parliament's Economy Committee
Tavish Scott MSP
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