---

Banking Bill

I thank those who have at least expressed sympathy for what lies behind the amendments. In particular, I thank my noble friend for his commitment on Lloyds/HBOS and RBS. That is very welcome and I look forward to their response. Were the Government to commit themselves to using informal measures to ensure that dominant companies created as a result of one form or other of government intervention take account of the views of individual consumers and small businesses, we would not need to legislate. I remain slightly sceptical that they will in all circumstances so do, but I look forward to the response to my noble friend’s letter to the chairmen of the two banks concerned. Therefore, I will not press that aspect tonight. On competition, this does not affect where we are rescuing small depositors; it exists only when, fairly dramatically, we are directly or indirectly creating a dominant company. In those circumstances, given the importance of the banking sector, and the fact that the state is forcing that restructuring, there are special reasons for asking the OFT to have a look at it. Eighteen months may be too soon in an emergency; perhaps we need to give it a little more time. Nevertheless, I say to the Government that it is dangerous to have lifted the normal provisions of competition assessment and therefore to allow something through that would at least have had a cursory OFT inspection. The OFT could look at it in a preliminary way to decide whether it refers it to the Government or to the Competition Commission or takes some further steps.