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Banking Bill

I shall speak also to related Amendment 162. These amendments add another subsection to proposed new Section 214B of the Financial Services and Markets Act, introduced by Clause 168. The clause allows the Treasury to make regulations for the Financial Services Compensation Scheme, and therefore the financial services industry, to contribute payments arising in connection with the exercise of the stabilisation powers under the special resolution regime. I am far from convinced that the Financial Services Compensation Scheme should be burdened with such payments, because it goes beyond the original intention for the Financial Services Compensation Scheme. It is justified by the Government on the basis that if the authorities did not act, a failing bank may well end up facing costs on the Financial Services Compensation Scheme. If regulations are ever used, I predict that they will be a complete nightmare to operate. My amendments, which are probing, are designed to test the limits of the contribution. They allow the Treasury to seek contributions from a private sector purchaser, or a liquidator or administrator—that is, the people who will have their hands on the assets of the failed bank. While my amendment is permissive, the intention is that the Treasury should have to justify not taking contributions from those sources before charging the Financial Services Compensation Scheme. I hope that the Minister will be able to reassure the House that the Financial Services Compensation Scheme will not simply be viewed as a convenient deep pocket for the Treasury to raid to pick up special resolution regime costs, and that all other contributors to the costs will be looked at in the first instance. I beg to move.