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Banks: Finance

Volume 488: debated on Tuesday 3 March 2009

To ask the Chancellor of the Exchequer what discussions he has had with his counterparts in the Dutch government on a contribution from them towards the financial assistance provided by the UK Government to (a) ABN Amro and (b) other Dutch banks via their parent companies in the UK. (259131)

Treasury Ministers and officials have meetings with a wide variety of organisations and international partners. As was the case with previous Administrations, it is not the Government’s practice to provide details of all such meetings.

To ask the Chancellor of the Exchequer what discussions he plans to have with his counterparts in other governments on contributions from them towards the financial assistance provided to banks from their countries by the UK Government. (259132)

The current financial crises are global problems and require international, as well as domestic, solutions. The UK Authorities have been heavily involved in work at both EU and international level to enhance the stability and resilience of the global financial system.

The Government will continue to work in close co-operation with international partners.

To ask the Chancellor of the Exchequer (1) what proportion of the capital provided from UK Government funds via UK Financial Investments Ltd to Royal Bank of Scotland has been used to provide additional capital to ABN Amro; (259133)

(2) what proportion of the capital provided from UK Government funds via UK Financial Investments Ltd to Lloyds HBOS has been used to provide capital to its overseas subsidiaries;

(3) what proportion of the capital provided from UK Government funds via UK Financial Investments Ltd to Royal Bank of Scotland has been used to provide capital to its overseas subsidiaries.

Under the recapitalisation scheme announced on 8 October 2008, the Government have invested £19.97 billion in Royal Bank of Scotland Group plc (RBS) and £16.96 billion in Lloyds TSB Group plc (Lloyds) and Halifax Bank of Scotland plc (HBOS). The recapitalisation agreements are between the Treasury and RBS, Lloyds and HBOS respectively.

It is a matter for each group to deploy capital where needed to support their businesses.

To ask the Chancellor of the Exchequer how much public money is invested in fossil fuel exploration, transportation and generation through UK Financial Investments’ shareholdings in (a) Royal Bank of Scotland, (b) Lloyds TSB/Halifax Bank of Scotland, (c) Northern Rock and (d) Bradford and Bingley. (260453)

It is a matter for each of these companies’ management to release specific business updates or provide any required disclosures in their audited annual report and accounts.

The Government’s investments are managed on a commercial basis by UK Financial Investments Ltd. (UKFI), a company which is wholly owned by the Government. Its overarching objectives are to protect and create value for the taxpayer as a shareholder, with due regard to financial stability and acting in a way that promotes competition.