Voice of business
If you weren't able to catch today's show, you missed a rare sight. Someone saying - "leave bankers alone".
Lord Jones - better known as Digby Jones - was our guest of the day.
As you'll know, as a former head of the CBI and as a former minister, he's rarely short of things to say.
And today he was particularly fired up on behalf of that much-unloved species, bankers.
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Now - he has an interest to declare in this area. He's a paid adviser to both Barclays and HSBC, big international banks who are also major players in the City.
Like many other banks, they lost heavily in exotic financial trading or investing in mortgage debt (though - notably - they didn't turn to the British taxpayer for a bail out when it all went wrong; they got their financial support elsewhere, from their own shareholders or foreign investors.)
While he's their paid adviser, Digby doesn't exactly strike you as a toadying mouthpiece for the banks.
He's been quick to criticise them for not lending more to small businesses.
He fears more small business will go bust, even as we pull out of recession, because the banks are too tight with their credit. While he says he understands their need to stash more cash to cover potential future crises, he says he's "extremely disappointed" by their treatment of British business.
He's also highly critical of the massive bonuses that were paid to top bankers and traders in the City's bonanza days - a point he repeated on our programme today.
And he has long-called for a re-adjustment in the British economy, to become less reliant on financial services and the City, and to invest more in British manufacturing.
His frequent tours of factories and workshops across the UK have made him a passionate tub-thumper for industry. It's one of the reasons he accepted the job of trade minister - the chance to sell and promote British craft and excellence in all corners of the globe.
But, but, but ...
His time as minister also reinforced his belief that banking, insurance and financial services remain crucial industries for Britain. They're home-grown businesses that draw in customers and investment from around the world.
He says we need a healthy financial industry to create jobs for the future - and to generate the taxes we'll need to repay our enormous national debts.
So he's quite cross about some comments from the City's top watchdog.
His fellow peer (and predecessor as CBI director) Adair Turner suggested recently that some of the things banks do are not socially useful.
Lord Jones thinks that's bang out of order.
He warns an attack on the banks from someone so significant as Lord Turner could harm investment in Britain and damage the reputation of British industry abroad.
As he told us about bankers - "It's not the time to smack them, it's the time to get behind them"
The full edition of today's Working Lunch - and earlier programmes over the past week - are available to watch online on the ³ÉÈË¿ìÊÖ iPlayer or on watch-again services like BT Vision.
And - as always - your comments are more than welcome.
PS. We're sorry we're being shunted around the schedules so much, but that's our public service duty to cover the party conferences for you.
Comment number 1.
At 24th Sep 2009, Roland Millward wrote:There's no need to smack bankers. They should be put down humanely!
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Comment number 2.
At 24th Sep 2009, mesmerizing commenter wrote:Regarding understandable billing theres two things that should be regulated:
1) Stop energy companies from trading standing charge against primary and secondary units. This is hugely confusing and makes it impossible to post equivalent rates. Make the companies charge a standing charge and a simple cost per unit thereafter. Everyone would then know where they are.
2) Stop energy companies from introducing new tarrifs that are cheaper while leaving old customers on the old tarrif. When I saw scottish power prices going down in the headlines earlier this year for "online energy saver" customers, I assumed my bill was going down. In fact I was on online energy saver 4 and the latest tarrif is online energy saver 6. Now I just changed to 6 and its a whopping 10% cheaper!!! So your supplier may be near the top of the best value, but you personally may be paying a much higher rate. This is just conning the customer, its blatently unfair, and will catch out the vulnerable like OAPs in particular.
If the regulator is not in the back pocket of energy companies (of course the regulator's senior management are not cosily interchangeable with those of the industry in general are they?), then the regulator should just axe all these so called deals and have a simple price for online, one for pre-pay, and one for pay on demand...and have done with it. Oh and what I want, one where a direct debit payment at the end of each period for exactly the cost of the energy used is taken...no more of that inflating my direct debit so the company can borrow my money for free.
All regulators for all industries should stamp on any deliberately confusing price structures.
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Comment number 3.
At 24th Sep 2009, markgj wrote:Might have been interesting ('had time allowed' I hear you cry!)to get Emma Jones' view on his comments, as you know she's very much in touch with the small business community through Enterprise Nation.
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Comment number 4.
At 25th Sep 2009, andrewtf wrote:I agree completely with Digby Jones and he in fact partialy answered a question that I had been wondering about for a while, namely how much do the Banks operations contribute to the economy of this country. Which it turns out is a lot.
This is something that had come up on Monday's panorama also, the reporter cornered a delegation including Boris Johnson. When they were departing in a lift the closing rhetorical shot from one of the delegates was something along the lines "Do you want a finance industry in Britain?".
Spot on, I thought, do we? The only way to answer that for me is to decide on how much value they are to me and every other non finance industry participant in the UK. I guess that is how much tax is derived from them and the feed down effect that they have on the rest of the economy agasint the cost of the bail outs.
So Working Lunch.... can you answer that for me?
On the question of bonuses, quite frankly I couldn't care less in the same way that I couldn't care less how much a footballer or a pop star gets paid - it is irrelevant to my life.
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