Bank of England Bill — Transitional provisions and savings — 22 Jan 1998

I beg to move amendment No. 41, in page 2, line 23, at end insert--

'(2A) At a meeting of the sub-committee the quorum shall be 7.'

Amendment agreed to.

Amendment made: No. 42, in page 2, line 25, at end insert--

I beg to move amendment No. 25, in page 5, line 2, after 'and', insert

'the highest possible levels of employment, and'.

That is what always happens--interest rates are raised to pass the punishment on to the people.

That enables the Government to write to the Bank of England to specify how that should be done.

Amendment, by leave, withdrawn.

I beg to move amendment No. 30, in page 5, line 41, at end insert

'and an estimate of its effect on inflation, economic growth, employment and the exchange rate.'.

Amendment, by leave, withdrawn.

Amendment made: No. 43, in page 7, line 21, after 'institution' insert

', or a former authorised institution,'.-- [Mrs. Liddell.]

I beg to move amendment No. 15, in page 9, line 36, at end insert--

'(2) In exercising the functions transferred under subsection (1) the costs of the Authority shall not exceed the costs incurred by the bodies previously responsible for exercising these functions, as adjusted for inflation.'.

Amendment, by leave, withdrawn.

Amendment made: No. 44, in page 19, line 11, leave out 'within the meaning of' and insert 'authorised under'.-- [Mr. Betts.]

Amendment, by leave, withdrawn.

I beg to move amendment No. 11, in page 42, leave out line 12.

Mr. Deputy Speaker:

With this, it will be convenient to discuss the following amendments: No. 12, in page 42, line 12, after 'any', insert 'legally binding'.

There are a number of other very general obligations.

Amendment, by leave, withdrawn.

Amendment made: No. 45, in page 43, line 5, leave out from 'satisfied' to 'shall' in line 6 and insert--

'(a) any requirement to consult before making an order under this Act, or

(b) any requirement of paragraph 2(1) of Schedule 6,

that requirement'.-- [Mrs. Liddell.]

Bill reported, with amendments.

Order for Third Reading read.

I beg to move, That the Bill be now read the Third time.

This is an historic Bill. For many years there has been much talk and discussion about the merits of an independent central bank; indeed, there have been many debates in the House. On entering office we made it clear that we believed that the best way to obtain price stability and a commitment to low inflation was to give the Bank of England operational independence to meet the Government's inflation target of 2½ per cent. The Bill is a cornerstone of the Government's economic strategy. It is a major step forward. The passing of the Bill will put in place another plank in our economic policy.

We have already made it clear that we want to promote stability and long-term growth. We are prepared to face up to the long-term issues, which the previous Government ignored for far too long. Those include the need to end the damaging cycle of boom and bust, which has affected this country badly for many years, and to put in place a framework for long-term stability. Controlling inflation is an essential precondition for growth.

We are taking steps to tackle the structure of unemployment and to equip people for the future by improving educational standards and providing opportunities for people to acquire skills. The welfare-to-work reform and the new deal for the young and the long-term unemployed are major steps forward that no Government in recent history have attempted. Our tax and benefits system will be overhauled so that it encourages work and makes work pay.

We have encouraged long-term investment; we shall abolish advance corporation tax; we have announced cuts in corporation tax, with more to come; we have overhauled the private finance initiative; and we have provided leadership so that we can influence Europe in the interests of this country.

The reform of the Bank of England is a major part of that strategy. It shows our determination to achieve economic stability and low inflation, which is good for business, for savers, for pensioners and for anyone on low and fixed incomes. The new Bank of England will have one of the most open and accountable systems of any central bank in the world. It has a clear target. Its procedures are open; as we discussed this evening, there are many ways in which its policy and commitment are open to scrutiny, by this House, the country and the world at large. That marks a commitment to openness and transparency which this country has not seen before.

This country depends on its international trade and on markets having confidence in the Government's ability to deliver economic stability and low inflation. The

22 Jan 1998 : Column 1240

independence of the central bank, the code of fiscal stability and the pre-Budget report are all planks in the same strategy to ensure that there is openness. Openness brings confidence and certainty that the Government will not be moved from their determination to deliver low inflation.

Question put , That the Bill be now read the Third time:--

The House divided: Ayes 207, Noes 116.

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All Votes Cast - sorted by party

MPs for which their vote in this division differed from the majority vote of their party are marked in red. Also shows which MPs were ministers at the time of this vote. You can also see every eligible MP including those who did not vote in this division.

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NameConstituencyPartyVote
Peter AinsworthEast SurreyConno
James ArbuthnotNorth East HampshireCon (front bench)no
Mr David AtkinsonBournemouth EastConno
Peter AtkinsonHexhamConno
John BercowBuckinghamCon (front bench)no
Paul BeresfordMole ValleyCon (front bench)no
Mr Richard BodyBoston and SkegnessConno
Tim BoswellDaventryCon (front bench)no
Peter BottomleyWorthing WestCon (front bench)no
Graham BradyAltrincham and Sale WestCon (front bench)no
Julian BrazierCanterburyConno
Angela BrowningTiverton and HonitonCon (front bench)no
Mr Ian BruceSouth DorsetConno
Simon BurnsWest ChelmsfordCon (front bench)no
Sir Sydney ChapmanChipping BarnetConno
James ClappisonHertsmereCon (front bench)no
Mr Alan ClarkKensington and ChelseaConno
Dr Michael ClarkRayleighConno
Mr Tim CollinsWestmorland and LonsdaleConno
Mr Michael ColvinRomseyConno
Mr James CranBeverley and HoldernessConno
David DavisHaltemprice and HowdenCon (front bench)no
Mr Stephen DayCheadleConno
Alan DuncanRutland and MeltonCon (front bench)no
Iain Duncan SmithChingford and Woodford GreenCon (front bench)no
Sir Peter EmeryEast DevonConno
Nigel EvansRibble ValleyConno
Mr David FaberWestburyConno
Michael FallonSevenoaksCon (front bench)no
Mr Howard FlightArundel and South DownsCon (front bench)no
Eric ForthBromley and ChislehurstConno
Liam FoxWoodspringConno
Roger GaleNorth ThanetCon (front bench)no
Edward GarnierHarboroughConno
Nick GibbBognor Regis and LittlehamptonCon (front bench)no
Mr Christopher GillLudlowConno
Dame Cheryl GillanChesham and AmershamCon (front bench)no
Mr Alastair GoodladEddisburyCon (front bench)no
Mrs Teresa GormanBillericayConno
Damian GreenAshfordCon (front bench)no
John GreenwayRyedaleConno
Dominic GrieveBeaconsfieldCon (front bench)no
Sir Archie HamiltonEpsom and EwellCon (front bench)no
Philip HammondRunnymede and WeybridgeCon (front bench)no
Mr Nick HawkinsSurrey HeathConno
John HayesSouth Holland and The DeepingsCon (front bench)no
Oliver HealdNorth East HertfordshireCon (front bench)no
David Heathcoat-AmoryWellsConno
John HoramOrpingtonConno
Gerald HowarthAldershotCon (front bench)no
Mr Andrew HunterBasingstokeConno
Michael JackFyldeConno
Robert JacksonWantageConno
Bernard JenkinNorth EssexCon (front bench)no
Robert KeySalisburyConno
Mr Tom KingBridgwaterCon (front bench)no
Julie KirkbrideBromsgroveConno
Eleanor LaingEpping ForestCon (front bench)no
Jacqui LaitBeckenhamConno
Andrew LansleySouth CambridgeshireCon (front bench)no
Edward LeighGainsboroughCon (front bench)no
Oliver LetwinWest DorsetConno
Julian LewisNew Forest EastConno
Peter LilleyHitchin and HarpendenCon (front bench)no
Sir Peter LloydFarehamConno
Tim LoughtonEast Worthing and ShorehamCon (front bench)no
Peter LuffMid WorcestershireCon (front bench)no
Sir Nicholas LyellNorth East BedfordshireCon (front bench)no
Mr John MacGregorSouth NorfolkConno
Andrew MacKayBracknellConno
David MacleanPenrith and The BorderConno
Mr David MadelSouth West BedfordshireContellno
Humfrey MalinsWokingConno
John MaplesStratford-on-AvonCon (front bench)no
Michael MatesEast HampshireConno
Francis MaudeHorshamCon (front bench)no
Dr Brian MawhinneyNorth West CambridgeshireCon (front bench)no
Theresa MayMaidenheadCon (front bench)no
Anne McIntoshVale of YorkConno
Patrick McLoughlinWest DerbyshireCon (front bench)no
Malcolm MossNorth East CambridgeshireConno
Mr Patrick NichollsTeignbridgeConno
Mr Archie NormanTunbridge WellsConno
Richard OttawayCroydon SouthCon (front bench)no
James PaiceSouth East CambridgeshireCon (front bench)no
Owen PatersonNorth ShropshireCon (front bench)no
Eric PicklesBrentwood and OngarCon (front bench)no
Mr David PriorNorth NorfolkCon (front bench)no
John RandallUxbridgeCon (front bench)no
Andrew RobathanBlabyCon (front bench)no
Laurence RobertsonTewkesburyCon (front bench)no
Mrs Marion RoeBroxbourneConno
Mr Andrew RoweFaversham and Mid KentConno
David RuffleyBury St EdmundsCon (front bench)no
Keith SimpsonMid NorfolkConno
Caroline SpelmanMeridenCon (front bench)no
Richard SpringWest SuffolkConno
Mr Nick St AubynGuildfordConno
Anthony SteenTotnesConno
Desmond SwayneNew Forest WestCon (front bench)no
Robert SymsPooleCon (front bench)no
Ian TaylorEsher and WaltonConno
Mr John TaylorSolihullConno
Mr Teddy TaylorRochford and Southend EastConno
Mr John TownendEast YorkshireConno
David TredinnickBosworthCon (front bench)no
Andrew TyrieChichesterCon (front bench)no
Robert WalterNorth DorsetCon (front bench)no
Nigel WatersonEastbourneConno
John WhittingdaleMaldon and East ChelmsfordCon (front bench)tellno
Mr John WilkinsonRuislip - NorthwoodConno
David WillettsHavantConno
David WilshireSpelthorneConno
Ann WintertonCongletonConno
Nicholas WintertonMacclesfieldConno
Shaun WoodwardWitneywhilst Con (front bench)no
George YoungNorth West HampshireCon (front bench)no
Mr Martin BellTattonIndependentaye
Bob AinsworthCoventry North EastLab (minister)aye
Douglas AlexanderPaisley SouthLabaye
Mr Donald AndersonSwansea EastLab (minister)aye
Janet AndersonRossendale and DarwenLab (minister)aye
Mr Joe AshtonBassetlawLabaye
Charlotte AtkinsStaffordshire MoorlandsLabaye
Mr Harry BarnesNorth East DerbyshireLabaye
Mr Nigel BeardBexleyheath and CrayfordLabaye
Margaret BeckettDerby SouthLab (minister)aye
Anne BeggAberdeen SouthLab (minister)aye
Mr Andrew BennettDenton and ReddishLabaye
Mr Gerry BerminghamSt Helens SouthLabaye
Roger BerryKingswoodLabaye
Clive BettsSheffield, AttercliffeLab (minister)tellaye
Hazel BlearsSalfordLab (minister)aye
Gordon BrownDunfermline EastLab (minister)aye
Nick BrownNewcastle upon Tyne East and WallsendLab (minister)aye
Karen BuckRegent's Park and Kensington NorthLab (minister)aye
Mrs Christine ButlerCastle PointLabaye
Stephen ByersNorth TynesideLab (minister)aye
Mrs Anne CampbellCambridgeLabaye
Ronnie CampbellBlyth ValleyLab (minister)aye
Mr Ivor CaplinHoveLabaye
Mr Roger CasaleWimbledonLabaye
Ben ChapmanWirral SouthLabaye
Malcolm ChisholmEdinburgh North and LeithLabaye
Michael ClaphamBarnsley West and PenistoneLabaye
Dr David ClarkSouth ShieldsLab (minister)aye
Charles ClarkeNorwich SouthLabaye
Mr Tony ClarkeNorthampton SouthLabaye
Ann ClwydCynon ValleyLab (minister)aye
Vernon CoakerGedlingLabaye
Mr Iain ColemanHammersmith and FulhamLabaye
Mr Tony ColmanPutneyLabaye
Yvette CooperPontefract and CastlefordLab (minister)aye
Ms Jean CorstonBristol EastLabaye
Jim CousinsNewcastle upon Tyne CentralLabaye
Mr Tom CoxTootingLabaye
Professor Ross CranstonDudley NorthLabaye
David CrausbyBolton North EastLab (minister)aye
Alistair DarlingEdinburgh CentralLab (minister)aye
Mr Terry DavisBirmingham, Hodge HillLabaye
Janet DeanBurtonLabaye
John DenhamSouthampton, ItchenLab (minister)aye
Andrew DismoreHendonLabaye
Jim DobbinHeywood and MiddletonLabaye
Frank DoranAberdeen CentralLabaye
Jim DowdLewisham WestLab (minister)aye
David DrewStroudLab (minister)aye
Angela EagleWallaseyLab (minister)aye
Maria EagleLiverpool, GarstonLab (minister)aye
Mr Huw EdwardsMonmouthLabaye
Clive EffordElthamLab (minister)aye
Mr Derek FatchettLeeds CentralLab (minister)aye
Frank FieldBirkenheadLab (minister)aye
Jim FitzpatrickPoplar and Canning TownLabaye
Ms Lorna FitzsimonsRochdaleLabaye
Caroline FlintDon ValleyLab (minister)aye
Barbara FollettStevenageLabaye
Michael FosterWorcesterLabaye
Michael Jabez FosterHastings and RyeLabaye
Mike GapesIlford SouthLabaye
Barry GardinerBrent NorthLab (minister)aye
Bruce GeorgeWalsall SouthLabaye
Neil GerrardWalthamstowLabaye
Ian GibsonNorwich NorthLabaye
Dr Norman GodmanGreenock and InverclydeLabaye
Roger GodsiffBirmingham, Sparkbrook and Small HeathLabaye
Mr Bernie GrantTottenhamLabaye
Mr Win GriffithsBridgendLab (minister)aye
Peter HainNeathLab (minister)aye
Mike HallWeaver ValeLabaye
Patrick HallBedfordLabaye
David HansonDelynLabaye
Harriet HarmanCamberwell and PeckhamLab (minister)aye
Sylvia HealHalesowen and Rowley Regiswhilst Labaye
Mr Ivan HendersonHarwichLabaye
John HeppellNottingham EastLabaye
Stephen HesfordWirral WestLabaye
Patricia HewittLeicester WestLabaye
Keith HillStreathamLabaye
Kate HoeyVauxhallLabaye
Phil HopeCorbyLabaye
Mr Alan HowarthNewport EastLab (minister)aye
Beverley HughesStretford and UrmstonLab (minister)aye
Mr Kevin HughesDoncaster NorthLab (minister)aye
Mr Alan HurstBraintreeLabaye
John HuttonBarrow and FurnessLabaye
Brian IddonBolton South EastLabaye
Adam IngramEast KilbrideLab (minister)aye
Glenda JacksonHampstead and HighgateLab (minister)aye
Mrs Helen JacksonSheffield, HillsboroughLabaye
Alan JohnsonKingston upon Hull West and HessleLab (minister)aye
Miss Melanie JohnsonWelwyn HatfieldLabaye
Fiona JonesNewarkLabaye
Mr Jon Owen JonesCardiff CentralLab (minister)tellaye
Sally KeebleNorthampton NorthLabaye
Alan KeenFeltham and HestonLabaye
Ann KeenBrentford and IsleworthLabaye
Ruth KellyBolton WestLabaye
Jane KennedyLiverpool, WavertreeLab (minister)aye
Piara S KhabraEaling, SouthallLabaye
Mr Andy KingRugby and KenilworthLabaye
Ms Oona KingBethnal Green and BowLab (minister)aye
Stephen LadymanSouth ThanetLabaye
Bob LaxtonDerby NorthLabaye
David LepperBrighton, PavilionLabaye
Tom LevittHigh PeakLabaye
Ivan LewisBury SouthLab (minister)aye
Mrs Helen LiddellAirdrie and ShottsLab (minister)aye
Martin LintonBatterseaLabaye
Ken LivingstoneBrent Eastwhilst Labaye
Mr David LockWyre ForestLabaye
Mr Calum MacDonaldNa h-Eileanan an IarLab (minister)aye
Andrew MacKinlayThurrockLabaye
Denis MacShaneRotherhamLabaye
Fiona MactaggartSloughLab (minister)aye
Judy MallaberAmber ValleyLabaye
Dr Jim MarshallLeicester SouthLabaye
Robert Marshall-AndrewsMedwayLabaye
Thomas McAvoyGlasgow RutherglenLab (minister)aye
Chris McCaffertyCalder ValleyLabaye
Siobhain McDonaghMitcham and MordenLabaye
John Martin McDonnellHayes and HarlingtonLabaye
Shona McIsaacCleethorpesLabaye
Tony McNultyHarrow EastLabaye
Mr Tony McWalterHemel HempsteadLabaye
Alan MealeMansfieldLabaye
Alun MichaelCardiff South and PenarthLab (minister)aye
Alan MilburnDarlingtonLab (minister)aye
Andrew MillerEllesmere Port and NestonLabaye
Laura MoffattCrawleyLabaye
Margaret MoranLuton SouthLabaye
Elliot MorleyScunthorpeLab (minister)aye
Ms Estelle MorrisBirmingham, YardleyLab (minister)aye
George MudieLeeds EastLab (minister)aye
Doug NaysmithBristol North WestLabaye
Mike O'BrienNorth WarwickshireLab (minister)aye
Bill OlnerNuneatonLabaye
Ian PearsonDudley SouthLabaye
Ms Linda PerhamIlford NorthLabaye
Mr Colin PickthallWest LancashireLabaye
Mr Peter PikeBurnleyLabaye
James PlaskittWarwick and LeamingtonLabaye
Mr Kerry PollardSt AlbansLabaye
Mr Chris PondGraveshamLabaye
Greg PopeHyndburnLab (minister)aye
Steve PoundEaling NorthLab (minister)aye
Mr Raymond PowellOgmoreLabaye
Bridget PrenticeLewisham EastLab (minister)aye
Gordon PrenticePendleLabaye
Dawn PrimaroloBristol SouthLab (minister)aye
Gwyn ProsserDoverLabaye
Ms Joyce QuinGateshead East and Washington WestLab (minister)aye
Mr Giles RadiceNorth DurhamLab (minister)aye
Andy ReedLoughboroughLabaye
John ReidHamilton North and BellshillLab (minister)aye
Mr Jeff RookerBirmingham, Perry BarrLab (minister)aye
Martin SalterReading WestLabaye
Mr Malcolm SavidgeAberdeen NorthLabaye
Mr Phil SawfordKetteringLabaye
Mr Brian SedgemoreHackney South and ShoreditchLabaye
Jonathan R ShawChatham and AylesfordLabaye
Mr Robert SheldonAshton-under-LyneLab (minister)aye
Andrew SmithOxford EastLab (minister)aye
Angela SmithBasildonLabaye
John SmithVale of GlamorganLabaye
Mr Clive SoleyEaling, Acton and Shepherd's BushLab (minister)aye
John SpellarWarleyLab (minister)aye
Phyllis StarkeyMilton Keynes South WestLabaye
Mr David StewartInverness East, Nairn and LochaberLabaye
Ian StewartEcclesLabaye
Mr Paul StinchcombeWellingboroughLabaye
Howard StoateDartfordLabaye
Gisela StuartBirmingham, EdgbastonLab (minister)aye
Mrs Ann TaylorDewsburyLab (minister)aye
Stephen TimmsEast HamLabaye
Paddy TippingSherwoodLabaye
Mark ToddSouth DerbyshireLabaye
Desmond TurnerBrighton, KemptownLabaye
Keith VazLeicester EastLabaye
Rudi VisFinchley and Golders GreenLabaye
Joan WalleyStoke-on-Trent NorthLab (minister)aye
Claire WardWatfordLabaye
Mr Brian WhiteNorth East Milton KeynesLabaye
Malcolm WicksCroydon NorthLabaye
Ms Audrey WisePrestonLabaye
Mike WoodBatley and SpenLab (minister)aye
Mr Tony WorthingtonClydebank and MilngavieLab (minister)aye
Anthony D WrightGreat YarmouthLabaye
Tony WrightCannock ChaseLabaye
Derek WyattSittingbourne and SheppeyLabaye
Mr Paddy AshdownYeovilLDem (front bench)aye
Mrs Jackie BallardTauntonLDemaye
Colin BreedSouth East CornwallLDemaye
Malcolm BruceGordonLDem (front bench)aye
Mr John BurnettTorridge and West DevonLDemaye
Vincent CableTwickenhamLDem (front bench)aye
Mr Brian CotterWeston-Super-MareLDem (front bench)aye
Edward DaveyKingston and SurbitonLDem (front bench)aye
Nick HarveyNorth DevonLDemaye
David HeathSomerton and FromeLDem (front bench)aye
Michael MooreTweeddale, Ettrick and LauderdaleLDem (front bench)aye
Mr David RendelNewburyLDemaye
Bob RussellColchesterLDemaye
Adrian SandersTorbayLDem (front bench)aye
Jim WallaceOrkney and ShetlandLDemaye
Eddie McGradySouth DownSDLPaye
Mr William ThompsonWest TyroneUUPno

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