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Welsh Affairs

We have been pressing the banks. We have done so since the beginning and during negotiations that led to the support, without which the whole banking system would have collapsed. We have stressed that the priority is for the banks to get the money out into the real economy. They have spent most of the time recapitalising themselves. As the hon. Gentleman has raised this point, let me report briefly on the past couple of economic summits that have been convened by the First Minister in Wales with my support and with the participation of a wide range of groups, including businesses and trade unions. One of the most telling points that everyone accepts, given the evidence that we have received, is that local bank managers no longer have—and have not had for the past 10 to 15 years—the autonomy to take certain decisions. That applies even though some of them have built up relationships with local businesses, know them and their directors and know the health of the economy. Instead of being able to sign off loans and continue credit arrangements, they have to pass decisions up the line to someone who sits at a computer, feeds material in and then says no.