Business Backs Government Banking Move

Tuesday, 20 January, 2009

BUSINESS leaders in North Wales last night gave their backing to new Government moves to end the lending freeze which is crippling the economy. Jeremy Salisbury, CBI North Wales vice chairman, said he agreed the Government needed to be bold in tackling the financial crisis. “These are very ambitious plans, but extraordinary times demand extraordinary policy solutions,” he said.

. “While there is no guarantee that what the government has announced today will be taken up, if it is it can only help. “ Mike Learmond regional organized of the Federation of Small Businesses North Wales said he was surprised the Government and Bank of England’s measures had come so soon after last week’s decision to guarantee business loans.

He said it was vital the banks “play along” with UK Government and Welsh Assembly Government programmes of public sector works designed to boost the hard-pressed construction industry. Kevin Mountford, head of banking at Ewloe-based price comparison website moneysupermarket.com, said: “However necessary these measures are, the bigger question remains; why are we, the taxpayer, being asked yet again to bail out businesses that have been managed irresponsibly” .

But, he added: “Despite the cost of bailing out the banking sector again, consumers should be reassured by the move. The consequences of leaving it to rot would be far more devastating. “If these measures are to have any success, the Government must put some weight behind its calls on the industry to free up lending and encourage savings. In short, it must help the industry develop the tools to sort itself out.”

Source: http://www.dailypost.co.uk/