Bankers’ Bonuses and the Banking Industry

Part of Opposition Day — [18th Allotted Day] – in the House of Commons at 3:08 pm on 25 February 2015.

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Photo of Helen Goodman Helen Goodman Shadow Minister (Work and Pensions) 3:08, 25 February 2015

My hon. Friend makes a powerful point. That is why people watching the debate will find it absolutely incredible that millions of pounds have been paid to bankers in bonuses.

I should like to come back to the central points in the motion. Pay should be a reward for good performance, but we have seen a disconnect between bank performance and the pay of many senior executives and traders. We have discussed whether or not there is improved accountability in the banking system. At the Dispatch Box, the Minister tried to persuade us that that was all sorted and that everything was fine and good. However, the argument that it was right for the Government to resist the EU cap on bonuses because if bankers did not receive bonuses they would just receive higher pay reveals that accountability mechanisms have completely failed. If those mechanisms were working properly, shareholders would be able to prevent that abuse and something that is in effect a loophole. [Interruption.] I thought that David Mowat would intervene, as that was a point that he made.