Commenting on the Chancellor’s decision to nationalise Northern Rock, Stephen Boyd, Scottish Trades Union Congress (STUC) Assistant Secretary said:
“This is the correct decision, albeit one that should have been made much earlier.
“Those who oppose nationalisation should stop hiding behind rhetoric and provide a convincing alternative strategy. They should also remember that this crisis is primarily attributable to weak and ineffective regulation and the hubris of Northern Rock’s senior executives.
“It is interesting that the Chancellor’s decision was announced as the Chambers of Commerce published their updated ‘Business Burdens Barometer’. Once again, the Chambers do not even attempt to quantify the positive labour market supply effects of regulation. Once again, they fail to state clearly which regulations they wish to see abolished and why.
“Far from consistently over-supplying regulation, this Government has presided over a financial services regulatory framework that has simply not been fit for purpose. Regulation should have been much tighter particularly with regard to the management of liquidity. The result of weak regulation is that the public now shoulders a burden far in excess of any the Government has placed on business. Perhaps civic society should establish a Burdens of Irresponsible Businesses Barometer”.
ENDS
For further information contact
Stephen Boyd 0141 337 8100