CHRISTOPHER TOWNSEND, PROSPECTIVE PARLIAMENTARY CANDIDATE FOR S W HERTS, ENDORSES VINCE CABLE'S BANKING SECTOR REFORM PLANS

12.00.00pm GMT Fri 5th Mar 2010

Christopher Townsend Endorses Lib Dem Bank Policies

Liberal Democrat Parliamentary Candidate for South West Hertfordshire, Christopher Townsend has commented on his party's plan for the banking sector, which the Lib Dem Shadow Chancellor Vince Cable announced last week. Christopher Townsend said: "Without a clear strategy for the banks, we are likely to see history repeating itself - another systemic failure of the banking system followed by another taxpayer-funded bailout."

At the end of February, Vince Cable set out a plan to change the way that banks do business. As Chancellor he says he would ensure that the banks that are guaranteed by the taxpayer act in the taxpayer's interest; that bonuses for employees of bailed out banks are banned; and that the banks themselves are split up, removing large-scale risk.

Christopher Townsend said: "The Lib Dems are the only party with a clear and effective strategy for both the banking sector and the financial crisis.

"While the Government struggles with ineffectual short-term policies, such as its temporary bonus tax, the Conservatives are busy thinking up policies that would, at best, perpetuate underlying problems in the banking sector and, at worst, put us all at risk.

"If the Tories form the next government and immediately deliver on their promise to cut public spending, we could be back in serious trouble. Banks would lend even less and we would be pushed back into recession. More people could end up losing their jobs, or declaring bankruptcy.

"Remember: during the recession of the 1990s, when the Tories were in power and David Cameron was special adviser to the Chancellor, the rate of unemployment in the UK soared and a million homeowners faced repossession. The Tories cannot be trusted with our economy any more than Labour can."