Ed Miliband MP sets out his banking reform plans at the Co-operative Bank HQ
This morning, the Co-operative Party gathered alongside City journalists, residents of Tower Hamlets and representatives of the financial mutual sector to hear Ed Miliband give a speech at the London HQ of the Co-operative Bank. His speech, broadcast live, set out his vision of real change for Britain’s banks.
Ed opened his speech by praising the Co-op: “You have always understood that ethics of responsibility, co-operation and stewardship must be at the heart of what we do. That’s one of the reasons why the Co-op Bank has in the last week seen a 25% rise in applications for accounts.” He introduced the Shadow Chancellor, Ed Balls, who was standing alongside him, as “a proud Labour and Co-operative MP”.
The Labour Leader made clear his vision of an economy that rewarded long-termism, patient investment and shared responsibility, and of a financial industry based on Stewardship banking, recognising its responsibility to serve the real economy and to build a long-term, trusted relationship with their customer. He reminded us of the time when building societies were based in the local communities they served and being a bank manager was a position to be respected.
Fundamentally, Ed Miliband called for better, genuine competition in the banking sector – an increase in the choice with “new banks appearing on high streets right across the country.” He added that, “we should have a thriving mutual sector once again.” Later, during questions, Ed Balls said that five years ago building societies and credit unions were regarded as a relic of the past by the City, but that instead the City needed to learn the lessons of the mutual sector. He praised the innovation of mutuals and lauded the trust in which they are held by the public.
Miliband was clear on his support for a UK equivalent of the US Glass-Steagal Act, something which Co-operative MP Chris Leslie has been pushing for in the current Financial Services Bill debates, in the face of Tory and Lib Dem opposition.
Ed said: “Some of the most deprived areas of the country are currently almost entirely excluded from banking services. We can only fix this when we know what is going on, when we have proper information. In the 1970s, the US government passed a law forcing the banks to publish details of the areas in the country to which they weren’t lending. That paved the way for radical action on community financing. Some banks in the UK already hold this information. We should collect and publish it.”
Ed Miliband’s speech today, hosted by the Co-operative Bank, gets us closer to banks that, as he put it, serve the people, not just themselves. Banks they can trust once again. Banks that can help us rebuild our economy, and rebuild an economy that works for working people.”
Policy areas: Banks & building societies
Tags for this article: banking, Co-operative Group, economy, Ed Balls, Ed Miliband, finance, financial mutuals, speeches
I am not convinced that ‘Jumping Ships’ to the Mutuals will cure the problem a better idea is not to ‘put all your eggs in one basket’ to coin a phrase which I am sure a good banker or energy company would advise. No statistical information has been printed on who is actually moving to ‘Mutuals’. That is relevant information for anyone who does not want to see their money poured down the drain like the City bank Bonuses and Mutuals http://www.guardian.co.uk/business/2012/apr/19/former-coop-bank-boss-payoff Perhaps the Mutual societies would like to avail along with the Cooperative Bank what the financial gain has done or indeed undone to their organisation every thing is relative many people over mortgaged in the 1980s’ and bought holiday homes beyond their means as your Sea-France article highlights.
Nationalise the NHS.
Anyone who requires a private health service should pay for it, but not be provided with any NHS services once they have gone private. All NHS doctors and specialists that have been trained by the NHS should only be allowed to work within the NHS. All health services should be provided free, including dentists a spectacles.
How do you fund this? Charge all income (even when earned abroad) so that the high earners pay more than low earners. Increase the National Insurance rate, publish the income from NI and how and where it is spent. Anyone who is paying for private healthcare at present should pay the same annual amount, on top of NI.
Set it up as a mutual that anyone can be elected to help manage the service.
Education
All private education should be provided within the private organisation, no allowance should be available from the government, and the registration of private schools as ‘charities’ should be stopped. Anyone at present paying for private education should pay the education service the same amount annually to have the privilege of being taken into the public schools. All Grammar schools should be converted to comprehensive schools, all schools should be multi ethnic multi religion and separate boys and girls schools should be stopped.
Let us have degrees in plumbing, electricians, bricklaying, carpentry nursing, the care services etc. These qualifications should pay better than solicitors, accountants, bankers, doctors etc. In fact the rule should be that any qualified person that looks after people (nurses, care workers, doctors etc) should by taxation take home more than solicitors, accountants, bankers, doctors etc.
If you look after people you should be paid more.
I don’t know why anyone would want to laud or trust building societies. They are among the most undemocratic businesses in the country. Building society directors give mutuals a bad name.
They are,of course, extremely good at propaganda and good at producing meaningless and misleading catchphrases. I don’t think that any other organisations have such biased and undemocratic ballot papers and voting procedures.
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