Treasury told to increase transparency
By politics.co.uk staff
MPs are demanding greater transparency from the Treasury regarding nationalised and part-nationalised banks.
A report published today by the Treasury sub-committee says more transparency is necessary due to the amount of public money funneled into the banks.
Sub-committee chairman Michael Fallon said: “By nationalising financial institutions, the government has taken on responsibility for significant liabilities. Monday’s additional package only increases the importance of accountability.
“We are therefore demanding that the Treasury quantify and disclose the liabilities involved in the extensive public funding of these banks. Given the amount of public money poured into them over the last six months, taxpayers deserve no less in this economic crisis.
“Public companies are required to publish quarterly data on their accounts and given the scale of public investment the taxpayer deserves no less information from the Treasury.”
The report recommends these disclosures are released annually, in the Treasury Group Resource Accounts, and should be held to a higher standard than the minimal requirements.
The Report notes the Treasury’s 2007-08 annual report and accounts cover the government’s financial relationship with Northern Rock but do not comment on the banks’ performance under temporary public ownership.
The Treasury should publish key performance information for these institutions in the Treasury Group Resource Accounts, the committee report states, as well, give the level of interest in the fully nationalised institutions and the Treasury’s role in their governance.
UK Financial Investments (UKFI), the body created to oversee the nationalised banks at arm’s length from the government, must report annually to parliament and be held to account by the Treasury committee, it is demanded.
The committee also wants performance indicators for UKFI, which should be identified and published by the government and reviewed every six months.
Northern Rock was nationalised in 2008, the government announced this week it would stop aiming to run down its mortgage book by encouraging borrowers to mortgage elsewhere and it is starting to rebuild is mortgage book by offering a greater variety of new home loans.
