GOVERNMENT AND THE FINANCIAL SERVICES INDUSTRY

Pages107-111
DOIhttps://doi.org/10.1108/eb024797
Published date01 February 1994
Date01 February 1994
AuthorALISTAIR DARLING
Subject MatterAccounting & finance
GOVERNMENT
AND THE FINANCIAL SERVICES INDUSTRY
Received: 23rd December, 1993
ALISTAIR DARLING
MP
ALISTAIR
DARLING
WHO
IS
40,
HAS
BEEN
THE
MEMBER
OF
PARLIAMENT
FOR
EDINBURGH CENTRAL SINCE
1987.
HE IS
CURRENTLY
THE
LABOUR PARTYS
SPOKESMAN
ON THE
CITY
AND
FINANCIAL
SERVICES,
AS
PART
OF
LABOUR'S ECONOMIC
AND TREASURY TEAM.
HE HAS
SPECIAL
RESPONSIBILITY
FOR
BANKING
AND
FINANCIAL REGULATION.
HE WAS
PREVIOUSLY
IN
THE
HOME AFFAIRS TEAM
AS THE
LABOUR
PARTY'S SPOKESMAN
ON
IMMIGRATION
AND
CONSTITUTIONAL AFFAIRS FROM 1988
TO 1992
AND
WAS A
MEMBER
OF THE
PLANT
COMMITTEE
ON
ELECTORAL REFORM SINCE
1990.
HE IS A
MEMBER
OF THE
LABOUR
PARTY'S COMMISSION
ON
ECONOMIC POLICY.
ALISTAIR DARLING STUDIED
LAW AT
ABERDEEN UNIVERSITY
AND
WORKED
FOR A
COMMERCIAL FIRM
OF
SOLICITORS
IN
EDINBURGH BEFORE BEING CALLED
TO THE
SCOTTISH
BAR IN 1984.
At the outset let me say that I do not
believe that it is the job of Govern-
ment to substitute its commercial
judgment for that of individuals, or
indeed the financial services industry
in general. A Government should, of
course, have an economic overview.
Only the Government can ensure
that the workforce is sufficiently
educated and trained and that there
is an efficient transport infrastruc-
ture for example. The market, if it
works effectively, will continue to
develop new products and that is
something to be encouraged.
However, any Government has
two legitimate interests and con-
cerns.
First, it is an entirely legitim-
ate aim of Government to encourage
certain sorts of behaviour, in invest-
ment or savings for example. Secon-
dly, the public expects the
Government to protect its interests. I
strongly believe that effective regula-
tion is good for the industry, as well
as being essential for the consumer.
INVESTMENT AND SAVINGS
First of all I shall consider the sort of
behaviour that the Government
might want to encourage. Quite
clearly the list is not exhaustive, but
I want to illustrate how Government
could, and should, use fiscal en-
couragement as well as other
measures to encourage certain
behaviour. When we have three
million people unemployed, a sub-
stantial trade deficit and a decline in
manufacturing investment, it must
be right that the Government en-
courages investment in the private
and public sector.
Britain's future lies in competing
in the manufacture of high added-
107

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