Clause 31

Part of Banking Bill – in a Public Bill Committee at 11:00 am on 11 November 2008.

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Photo of Ian Pearson Ian Pearson Parliamentary Under-Secretary (Economic and Business), Department for Business, Enterprise & Regulatory Reform, Economic Secretary (Economic and Business), HM Treasury 11:00, 11 November 2008

Discussing the amendments to clause 31 a few moments ago, I mentioned the importance of acting in a proportionate manner and in the public interest. Article 1 of the first protocol of the European convention on human rights provides for the protection of property rights, but that protection is not absolute. Property rights may be interfered with where it is in the public interest and proportionate to the aim pursued.

Very powerful public interests are demonstrated by the satisfaction of the general and specific conditions in the SRR. In addition, the Bill makes provision for the assessment of compensation that would demonstrate that a fair balance has been struck when intervening under the SRR to protect financial stability and depositors. We believe that the actions we are taking are very much proportionate and in the public interest. We have consulted on them extensively, as the Committee is aware.