§ Mr. Blairasked the Chancellor of the Exchequer (1) whether, pursuant to his reply on 7 May, Official Report, 153W column 726, he will list the categories of departures from normal prudent banking practice of Johnson Matthey Bankers; and if he will make a statement;
(2) whether he will ask the review body considering banking supervision and the affairs of Johnson Matthey Bankers to investigate whether, following the departures of Johnson Matthey Bankers from normal prudent banking practice, any employee of Johnson Matthey Bankers was subject to dismissal or other disciplinary action.
§ Mr. Ian StewartI have nothing to add to the answers given to the hon. Member on 3 May, 7 May and 8 May, at columns256, 726 and 402 respectively.
§ Mr. Blairasked the Chancellor of the Exchequer whether the £100 million facility granted to Johnson Matthey by the Bank of England has been converted into its capital base.
§ Mr. Ian StewartI refer the hon. Member to the statement issued by the Bank of England on 13 May, of which a copy has been placed in the Library.
§ Mr. Blairasked the Chancellor of the Exchequer what is the estimated loss to the Inland Revenue from the arrangements whereby the rescue of Johnson Matthey Bankers is to be financed by banks other than the Bank of England.
§ Mr. Ian StewartAny such estimates can only be hypothetical, since tax revenue forgone as a result of indemnities provided by the private sector banks participating in the rescue operation would have to be measured against the loss of revenue—in the form of relief for bad debts—which would have arisen if Johnson Matthey Bankers had been allowed to fail.