Prime Minister's question asked in the House of Commons, by Alan Simpson (Labour). It was answered on Wednesday, 10 February 2010 on behalf of the Prime Minister.

Engagements

Question: Does the Prime Minister accept that the welcome international support for eurozone countries facing economic difficulties is undermined by the $8 billion-worth of speculative transactions that are currently taking place against the value of the euro? Does that not reinforce his case for the urgent introduction of a Tobin tax, which could bring to the international table £400 billion per year? That would be as relevant to the developing needs of the poor countries in the south as it would be to avoiding austerity measures in the north.

Answer: What we want is international agreement to restructure our banking system in the way that is necessary. It cannot be done by one country on its own; it must be done by countries working together. We have put proposals to the G20 whereby we could co-ordinate activity in terms of capital requirements for banks, liquidity ratios and the rewards that they are prepared to pay, but it is also true that the relationship between banks and society needs to change. I have proposed, with other people, that a levy be raised from banks. There is new interest in that around the world, and I believe that over the next period we will reach agreement on a global financial levy. I am sorry that many people opposed it when it was first announced, because I believe that we will be able to go ahead with it in the not too distant future.

Secondary information

Type: Oral question
Reference: 505 c912
Session: 2009-10
Oral question type: Supplementary
Chamber / Committee: House of Commons chamber
Subjects: Financial services Taxation Tobin tax Health services Visual impairment
Link: View this Prime Minister's question on www.publications.parliament.uk