11/09/2009
The effect of the crisis in the banking sector, the impact of this and the wider recession on Scotland’s economy, and the actions required to meet future economic challenges will be the subject of an inquiry by the Scottish Parliament’s Economy, Energy and Tourism Committee this month.
The inquiry is set to take evidence from high-ranking and influential figures including Royal Bank of Scotland chief executive Stephen Hester, Lloyds Banking Group executive director Archie Kane, Scottish Financial Enterprise chief executive Owen Kelly, BBC business editor Robert Peston and others.
The inquiry, which begins on September 16, will briefly review what caused the problems in the banking and financial-services industry before moving on to explore how this has affected the wider economy in Scotland, and assess whether proposed changes and restructuring plans will deliver the best outcome in the future.
Committee Convener Iain Smith MSP said: “In recent weeks there have been some indications that the recession may be beginning to ease and that the fortunes of the UK economy are slowly improving.
"However, this recession is widely recognised as one of the worst on record and most commentators think unemployment levels will still be an issue for some time to come.
"This inquiry is seeking to better understand the causes and nature of the recent difficulties but, importantly, not to get caught up in the past.
"Essentially we want to examine what the future holds for Scotland’s financial sector. We want to be able to assess how we turn around the problems in our financial institutions, build on our successes and help the wider economy to recover again.”
In particular the committee will focus on:
- the changes which can be expected in Scotland’s financial services sector
- the likely effects these will have on business and retail banking
- how competitive the banking sector will be in Scotland in the future
- how restructuring plans will affect jobs in Scotland
- the role of the public sector in dealing with the financial crisis
- how Scotland retains a global perspective and attracts new investment into the country.
Further information
The timetable and witness details for the first stage of the Economy, Energy and Tourism Committee banking inquiry are as follows:
16 September
Scottish Financial Enterprise
Owen Kelly – Chief Executive
British Bankers Association
Paul Chisnall – Executive Director, Financial Policy and Operations
Building Societies Association
Adrian Coles – Director General
23 September
To be announced
30 September
BBC
Robert Peston – Business Editor
Further evidence sessions will be held in November and December, with details available in October. These will include senior representatives of banks and other financial service companies, trades unions and other organisations.