Urgent Question - Businesses (Financial Support)

Urgent Question

14-Jan-2009

Mr. Michael Moore (Berwickshire, Roxburgh and Selkirk) (LD): In recent weeks, hundreds of my constituents have lost their jobs, and many more who work for perfectly good companies fear the same fate, because the businesses for which they work are effectively being throttled by the attitudes and approaches of the banks. In many instances, the basic trust between banks and businesses has broken down. Will the Minister assure us that he will do more than carefully monitor the situation, and actively manage things so that businesses that need the cash, get it?

Ian Pearson: We are actively intervening, and the measures announced today are major steps forward in providing credit support and loan guarantees to companies. We cannot manage every individual transaction—that would be complete nonsense, and neither the hon. Gentleman nor any other Member would sensibly suggest that. However, we are ensuring that there is a sensible framework of support and that a range of policy instruments is available through the banks to help companies facing problems at the moment. That is what we are doing, and we believe that it is the right policy instrument. However, we will continue to consider the situation and discuss matters with the business community. If more can sensibly be done, we will want to do it.

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