Financial Services Bill — Committee (2nd Day) (Continued)

Part of the debate – in the House of Lords at 9:15 pm on 15th March 2010.

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Photo of Baroness Noakes Baroness Noakes - Shadow Minister, Shadow Minister 9:15 pm, 15th March 2010

My Lords, I cannot leave unchallenged that this model worked very well in a crisis. We all know that this model failed abjectly the first time it was put to the test, which is why this Bill tries to pretend that the arrangements that used to work just need a little bit of tweaking and improving to make them work even better. We know that is not the case.

The concept that the Minister is really putting forward is that financial stability is not one thing where everybody is working together. The FSA does a little bit working on its own and perhaps with the Treasury. The Bank does its bit perhaps working with the Treasury. The Treasury does whatever the Treasury does and then they come together in this shiny new concept called the Council for Financial Stability and somehow this all works.

I think the Minister does not really believe that this will all work. This is really all rather silly. I am getting bored with the Council for Financial Stability. All the Minister has said has not endeared the Council for Financial Stability to my party. I do not think that we are any more impressed with it at the end of these amendments than we were at the beginning of day one of Committee. However, I think it is time to move on from the Council for Financial Stability. I beg leave to withdraw the amendment.

Amendment 34 withdrawn.

Amendment 35 not moved.

Amendment 35A

Moved by Baroness Noakes

35A: Clause 5, page 4, line 10, at end insert-

"( ) The FSA must issue a statement of policy about-

( ) its understanding of the objective, and

( ) in what circumstances and how it intends to use its powers to achieve the objective.

( ) Before issuing the statement of policy, the FSA must consult-

( ) the Treasury,

( ) the Bank of England, and

( ) such other persons as it considers will or may be affected by the statement."