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Banking in Scotland

I declare an interest as a trustee of the Consumer Credit Counselling Service in Scotland. I act in a voluntary capacity, with no remuneration. The CCCS is a debt advice charity, which has been greatly active on many of the matters raised by my hon. Friends and others during this welcome debate. The debate is about a most welcome report. As my hon. Friend the Member for Glasgow South West (Mr Davidson) said, the report, which was thorough and worth while, was published at the end of the previous Parliament. It was incredibly important, given the estimated one in 10 jobs in Scotland that are linked to the long-standing financial services industry. Jobs, of course, have subsequently been lost in Scotland, as they have elsewhere, bank branches have closed, and the whole economy has been affected by the credit crunch. On this, my fourth day in my new role as shadow Financial Secretary, I anticipate having many debates on financial services and their impact on consumers in all corners of the country. Although I spoke far too much and at great length in my previous guise as a Back Bencher, I will take this opportunity to reiterate my default position on many of these matters and, in particular, on the three clear questions that I believe are fundamental to my new portfolio. First, what reforms are necessary to minimise the systemic risk to a well functioning economy and society following the experience of the credit crunch? Secondly, how can we create a thriving and healthy financial services industry in the United Kingdom, including in Scotland, rebuilding it with a reputation for sustainability, solidity and trust? Thirdly, how can we ensure greater fairness for the consumers of financial services products, so that the industry operates on the basis of common sense and fair play? It is heartening that many of the contributors to this debate not only focused on what might sometimes seem to be ethereal issues between the players in the industry, but considered matters very much from the consumer perspective, speaking of people's encounters with issues that are central to their lives. The report contains an excellent collection of evidence, taken over a long period, going back to November and December 2009. I am glad that my hon. Friend referred to the visits to Ireland and to evidence heard elsewhere, successfully bringing in the arc of prosperity and making important points on the changing circumstances and the erroneous arguments made by members of the Scottish National party. Many interesting lessons on the housing market, on public sector deficit reduction and its impact on growth, on the regulation of credit rating agencies and so forth, are all brought out in the report. Perhaps most notable is the impact of the credit crunch on Scotland in respect of changes to the Royal Bank of Scotland and Halifax Bank of Scotland—HBOS—and we should not forget the difficulties that affected Dunfermline building society. The report is an eloquent exposition or post-mortem of the lessons that need to be learned from that period, and it is worth reiterating them.