Banking
During Scottish Questions, Philip Dunne asks the Secretary of State if the pension settlement of its former chief executive, Sir Fred Goodwin, is legally binding?
Mr. Philip Dunne (Ludlow) (Con): What recent discussions he has had with representatives of banks on the future of banking in Scotland; and if he will make a statement. [263300]
The Secretary of State for Scotland (Mr. Jim Murphy): I am in regular discussions with bank representatives. I am determined that Scotland and the UK can remain world centres for financial services.
Mr. Dunne: The Secretary of State has just confirmed that the Royal Bank of Scotland's lending commitment is legally binding. Will he confirm that the astonishingly generous pension settlement of its former chief executive, Sir Fred Goodwin, is also legally binding? Will he therefore apologise for the soundbite from his Cabinet colleague who has postured on this issue but not been prepared to apologise for it?
Mr. Murphy: These decisions were taken by the Royal Bank of Scotland's board. I find it distasteful that one individual can be rewarded in such a remarkable way for failure and for the undoubted banking vandalism that has put at risk the well-being of so many families and business in Scotland and across the UK. It is important, as we try to re-stabilise the banking sector, that there should be no reward for failure. We find it extraordinarily distasteful that the Royal Bank of Scotland board made that decision.
