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Banking Bill (Money)

The Minister is right to say that this matter has had a great deal of debate and scrutiny. However, as the hon. Member for South-West Hertfordshire (Mr. Gauke) has said, at the end of it all many of us remain at least uneasy—and I could put it a little more strongly. To say that retrospective legislation is against the public interest is to state the obvious. One aspect of this matter that worries me is the legal uncertainty bit. In an area of our economy that is so important, we must have certainty. When we are in uncharted waters such as these, any uncertainty will be unhelpful. The Bill is primarily about the protection of depositors, and that is quite right. That is its main thrust. However, using retrospectivity to give them enhanced protection will potentially undermine or reduce the rights of another set of stakeholders. I am convinced that this will result in some real issues that will lead to a judicial review. The whole idea of balancing and of having fairness and desirability tests when we are, in effect, preferring one set of stakeholders to another, is fraught with difficulties. However, as the Minister hinted, the kind of amendments that would begin to satisfy me and many others would render the whole exercise of retrospectivity useless and unworkable. There is therefore no way we can get round this problem. Flexibility, used on limited occasions, is one thing; using this power in a wider context to address unforeseen circumstances on a larger canvas is something else. We shall have to see how it works out. I am unhappy, rather than uneasy, but I am prepared to support the measure because we need this legislation and because a case has been made for having some flexibility.