---

Banking Bill

My Lords, I wonder whether the Minister recognises just how slightly comical he looks making the argument for confidentiality in respect of this kind of information. As I understand it, an inquiry into how the information regarding Northern Rock, the Royal Bank of Scotland and the other banks which were in discussions with the Treasury got into the hands of Robert Peston and was broadcast on the BBC has still not been instituted by the Government. Nor has there been any response to the complaints from directors of financial institutions that they find out more about what is going on in respect of their institutions by reading Robert Peston’s blog on the BBC website than by entering into a dialogue with the Treasury. Given that in the other place the Government have chosen to resist my noble friend’s very sensible amendment and have come back with what she has generously described as half a loaf, it really is quite extraordinary that if the Government are standing on this principle of the importance, which I accept, of maintaining confidentiality in these matters, they have done so little to deal with the breaches of confidentiality that have occurred in the Treasury or within the government service as a whole and which did enormous damage. My mind may be playing tricks on me, but I seem to recall that the run on the bank of Northern Rock occurred after the BBC reported that it was in discussions with the Government about obtaining finance. I also seem to recall that many pensioners and savers saw their shares in the Royal Bank of Scotland fall by more than 40 per cent in the course of a few days because the BBC reported that the clearing banks were in discussion with the Treasury. I have great respect for the Minister, and while I entirely understand his position on confidentiality, I do not understand why there has not been a proper inquiry instituted to find out how this came about. I am certain that were it to happen in the City, there would be serious repercussions and the FSA would, at the very least, conduct an inquiry. At previous stages of our consideration of this financial crisis, I have raised this matter and been told that it was a matter for the FSA. But given the Government’s clear policy about the importance of confidentiality, can the Minister tell us why there is no inquiry, what has happened, and, if there is an inquiry that has not been announced, when we can expect to have an explanation?