Gordon Brown speech at Press Association
Gordon Brown speech at Press Association; Question:
Could I ask you to what extent, Prime Minister, would you urge other countries to take up the sorts of measures of guaranteeing loans that you put forward last week? And why do you think that it is that perhaps there is a reluctance to do so among your European partners so far? And if I could just allow Westminster politics to intrude for a moment, on the issue concerning your four Labour Peers, have you considered withdrawing the Whip from them for the time being given the gravity of the charges they face?
Prime Minister:
Well first of all on your first question, I think the Dutch have just announced today that they are following a similar insurance-based model. What you have got to do is deal with the difficult assets in banks and find a way of allowing the rest of the banking system, which is healthy, to move forward. Every country is looking at how it can do this so that they can actually expand lending. They are not doing it to deal with the problems of the past, they are doing it because it is only by dealing with the problems of the past that you can get the expansion of lending for the future. So there are different models, there are a great deal of similarities between them. This morning the Dutch government announced that it was doing an insurance-based model very similar to what we have announced. There is flexibility in what we have announced and what we can do. We are having discussions obviously with the banks themselves, but I have no doubt that the end product of this is, having capitalised the banks and stopped them collapsing, then having created greater demand in the economy through the expansion of the fiscal and monetary policy, we have now got to get the expansion of lending that is necessary to meet any rising demand. That expansion of lending relies on us using the Bank of England where the Governor has advocated to operate in a different way to lend directly to the corpo...





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January 26, 2009
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