Speaking in advance of the ministerial statement on HBOS, Stephen Boyd, Scottish Trades Union Congress (STUC) Assistant Secretary said:
“The STUC will provide MSPs with a short briefing in advance of this afternoon’s (Wednesday 24 September) debate. We argue that the current financial crisis, of which the takeover of HBOS by Lloyds TSB is a consequence, is inevitable given lax regulation and the ‘financialisation’ of the economy. Urgent action is required to effectively regulate the markets and rebalance the economy.
“Consequently, the STUC is calling on the Scottish Government to:
*press upon Lloyds TSB’s Board and senior executives the importance of immediate and comprehensive engagement with the recognised trade unions;
*maintain the alliance with civic Scotland to ensure that pressure is brought to bear to retain jobs and HQ functions in Scotland;
*establish a Scottish Investment Bank to provide patient, committed long-term capital to growing Scottish companies; and,
*working with stakeholders and using all the levers available to it, design and implement a modern industrial strategy for Scotland.
“The STUC is also calling on all politicians to play a role in changing the prevailing business culture – a very clear signal must be sent to the markets that reckless behaviour will no longer be tolerated. The UK Government and regulators must act now to effectively re-regulate the markets. Priority should be given to:
*reducing the risk from executive reward mechanisms which incentivise reckless behaviour; and,
*effectively regulating the securities market. Far from improving stability through risk-dispersal, securitisation only served to globalise the consequences of reckless lending in specific markets. All financial securities should now be traded in licensed exchanges by organisations whose accounts are subject to regular inspection.
“The STUC is also calling for the National Conversation and Calman Commission need to engage with the issues of regulation, ownership and control and the role of Government and central banks raised by the events of the last week”.
ENDS
For further information contact Stephen Boyd 0141 337 8100