Will Vince Cable clean up RBS for good?

Could the new Secretary of State for Business, Innovation and Skills help stop banks like RBS funding climate chaos with public money?

Following yesterday’s historic deal between the Liberal Democrats and Conservative Party, Vince Cable was tipped to oversee business and banking in the new cabinet. This could signal good news for our Ditch Dirty Development campaign to clean up the financial sector and stop banks like RBS fuelling climate change with public money.

People & Planet, alongside campaign groups the World Development Movement and PLATFORM, has been calling for a stop to reckless behaviour by the banks since before the financial crisis began. Recently we organised high profile protests targeting the use of taxpayers’ money by the Royal Bank of Scotland to finance high-impact oil and gas extraction, including tar sands operations, which are having devastating impacts on indigenous communities in Canada and on the climate.

Ian Leggett, director of People & Planet said today:

“The LibDems have long recognised the need to align our ownership of banks such as RBS with broader policy objectives such as the transition to a low carbon economy. Prompt action to ensure that public money does not go into tar sands in Canada or new coal-fired power stations will inspire confidence that this new government is serious about creating a low carbon future.”

Deborah Doane, director of the World Development Movement added:

“We are pleased to hear that Vince Cable, who has consistently spoken out in favour of regulating the banking sector will be part of the new coalition government. Lib Dem policies have been very progressive in the area of finance sector regulation, supporting the Financial Transaction Tax, a new Green Investment Bank and intervention to curb speculation through splitting up the banks. They also committed at their Party Conference last year to end taxpayers’ support for RBS’ investments in tar sands extraction. Introducing these policies from the outset would signal a real commitment to cleaning up the mess that the financial crisis has left Britain and the world in.”

We are also encouraged by the senior Lib Dem MP’s plans to launch a green investment bank, and hopeful that he will drive forward plans to raise money through a tax on speculative bank transactions.

Kevin Smith, co-director of PLATFORM said:

“Vince Cable needs to ensure that the reform of the banking sector involves addressing environmental as well as financial sustainability. The new government’s plans for a Green Investment Bank will be dramatically undermined if it continues to allow RBS to use public money to support and expand carbon intensive industries and operations around the world.”