Prime Minister's question asked in the House of Commons, by Lord Cameron of Chipping Norton (Conservative). It was answered on Wednesday, 21 January 2009 on behalf of the Prime Minister.

Engagements

Question: The Prime Minister talks about being isolated, but does he not realise that he is the only person in the country who thinks he is doing a good job? [Interruption.] There was not exactly a roar of approval from behind him. The whole point about the first recapitalisation was that it was meant to get the banks lending. It has failed to do that, as even the Prime Minister has admitted. Let me put the question again. The shares were worth £37 billion. They are now worth less than £17 billion. Will he confirm—it is simple maths—that, as things stand, the taxpayer has lost more than £20 billion?

Answer: The point of the recapitalisation of the banks—[Interruption.] I am sorry that the Conservatives do not want to understand economics. The purpose of the recapitalisation of the banks—[Hon. Members: ““Answer!””] They should really grow up and face up to the big issues. The point of the recapitalisation of the banks was to stop them collapsing. If we had taken the right hon. Gentleman's advice and not put our stake into the banks, they would have collapsed. Thousands more people would have been worse off and thousands more businesses would have suffered. As a result of what we have done no saver has lost any money. What is his alternative to the capitalisation of the banks?

Secondary information