Thurso leads criticism over rescued banks

12.00.00am GMT Thu 4th Mar 2010

Far North MP and Liberal Democrat Business spokesman John Thurso led a wave of criticism from all parties over the Government's failure to secure credit from the rescued banks at BIS questions today stating:

"The banks have failed to honour their commitment to lend, UKFI have failed to sanction the banks, and the Government's scheme has failed to help. What will the Minister do about this catalogue of failure?"

Earlier he referred to the report by the Public Accounts Committee which noted that as a part of the rescue package the Government owned banks had committed to £39 billion of lending which they had failed to deliver claiming lack of demand. He also quoted from the recent IoD survey which showed that 57% of directors who had applied for bank finance had been turned down and worse still that 83% of those turned down had not been informed of the Government's guarantee scheme. In reply the Minister claimed the scheme was a "success".

Speaking afterwards John Thurso said:

"This Labour government is in denial. Every organisation that has surveyed businesses has shown that business is being denied credit which is jeopardising the recovery. These same banks are paying billions in bonuses, it is time the money went to businesses."