Labour’s ‘business as usual’ approach fails to address banking system’s fundamental flaws

Plaid Cymru’s Treasury spokesperson, Jonathan Edwards MP, has criticised Labour leader Ed Miliband’s ‘weak and inadequate’ banking reform proposals, claiming Labour are only interested in maintaining ‘a business as usual position’.

Mr Edwards repeated his party’s call for the complete separation of retail and investment banks, and the introduction of a Robin Hood tax on financial transactions in order to raise revenue from high finance.

Mr Edwards said:

“These weak and inadequate proposals will do nothing to address the fundamental flaws in the UK banking system.

“What small businesses urgently require is an alternative banking model based on the community banking model of countries such as the US and Germany.

“These are banks, often operated on a minimal profit basis that have a defined role of increasing local cash circulation and working with the local business community to ensure their development is supported.

“Deposits by individuals are circulated locally.

“What Labour are offering is more of the same, a business as usual position which shows they continue to be hooked on high finance and a highly centralised model based on the Square Mile.

“To end moral hazard, investment and retail banking activity needs to be completely divorced. Ordinary working people and businesses shouldn’t be guaranteeing the casino activities of investment bankers.

“If Labour were serious about changing the banking system they would join with us and call for a Robin Hood tax on financial transactions so that revenue can be raised from high finance to reinvest in the real economy.

“The Labour Tory tag team aren’t serious about radically altering the way the bankers operate.”

ENDS

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