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Clause 213

Banking Bill – in a Public Bill Committee at 6:45 pm on 28th October 2008.

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Question proposed, That the clause stand part of the Bill.

Photo of David Gauke David Gauke Shadow Minister (Treasury)

Clause 213 seems a strange place to state that the Bank of England is excluded from clause 207(1). I am surprised that that was not dealt with in clause 207. Is the Minister in a position to explain the statutory basis on which the Bank of England issues banknotes?

Photo of Angela Eagle Angela Eagle The Exchequer Secretary, Member, Labour Party National Executive Committee

The Bank of England is the UK’s central bank, so it is appropriate that it can issue banknotes throughout the UK, which is what clause 213 sets out. The right to issue notes in Scotland and Northern Ireland is a privilege and a long-standing tradition for those nations, but it does not preclude the Bank of England issuing notes. The legislation that authorises certain banks to issue banknotes is completely separate from that which gives the Bank of England the right to issue notes in the UK. Clearly, that is the legislative basis upon which the Bank of England operates. I do not have the exact title of the relevant Act in front of me, but I am happy to whisper it to the hon. Gentleman at a later stage in our proceedings if that will satisfy him.

Question put and agreed to.

Clause 213 ordered to stand part of the Bill.

Further consideration adjourned.—[Mr. Blizzard.]

Adjourned accordingly at one minute to Seven o’clock till Thursday 30 October at Nine o’clock.