Tuesday, 9 July 2013

Councillor Richard Kemp: Why Liverpool needs its own Bank | Bay TV Liverpool

Councillor Richard Kemp: Why Liverpool needs its own Bank | Bay TV Liverpool

Click on the link to see Richard's interview. We will forgive him his Liverpool-centric  view on this occasion because the economic argument he is making is central to our understanding of how our economy can revive.

It is, as always, well worth reading David Boyle's most recent posting on a related issue- How to shift economic power without the help of the government.

I have reproduce Richards main argument below and his motion to Liverpool City Council

 Councillor Richard Kemp CBE, Leader of the Liberal Democrats in Liverpool talked to Bay TV about a motion he will be moving at the next meeting of Liverpool City Council in mid-July. Councillor Kemp will say, “solutions to problems in Northern Cities like Liverpool and Manchester are being held back by having a financial system where decisions about investment are at best made in London and at worst anywhere in the World. The North of England used to have its own big Banks, Insurance Companies and Mutuals and now must create those institutions again to reduce our dependence on London and the South-East.
In March the Government changed the rules to establish new Banks and professional advisers I have consulted have revealed that a Bank could be established in as little as 9 months. Big Councils like Liverpool and Manchester and their pension funds already have big holdings of cash, land and property. There would be a tremendous desire for local businesses and individuals to invest in a local bank which would then invest in local public activity and invest direct in employment creating businesses.” Councillor Kemps’ motion also urges a financial transactions (Robin Hood) tax and more support for campaigns against pay day lenders. The full motion is appended below.
Liverpool City Council recognises that one of the major problems for Liverpool for the past 30 years has been the gradual withdrawal of financial bodies from within Greater Liverpool that can make financial decisions about Greater Liverpool. This has meant that an assumption that the wealth of the Country can be sustained by a London based and London dominated financial sector has been proved to be a fallacy.
Recognising the need therefore to work with us to change the system Liverpool City Council:
Welcomes changes made by the Government to make it easier to create new banks. It therefore requests the Chief Executive and Director of Resources to examine the possibility of creating in the first instance a Bank of Liverpool to act as an investment bank to fund the types of investment needed by the Mayor for infrastructure redevelopment and by the private sector seeking long-term financial capital. In the long-term to expand the bank of Liverpool to become a retail bank in which local residents and businesses from Greater Liverpool can invest and use the services of.
Welcomes the emergence of the ‘Move Your Account’ Organisation and commits to working with that organisation to encourage residents and businesses to move their bank accounts to get better terms.
Welcomes the renewed campaign for the creation of a ‘Robin Hood’ or ‘Tobin’ tax on financial transactions. Recognises that such a tax would create large amounts of revenue both in this country and internationally and would reduce the amount of speculation in financial instruments to the gain of poorer people and countries.
Requests the Mayor to examine the possibility of using subordinated loans at low cost to provide the Credit Unions within the city with more finance to make low-cost loans
Commits to working with the CABs and other responsible advisory agencies in the city to ensure that people know the dangers of the disreputable pay day loans and cheque cashing operations within the city


  1. Perhaps the name "Martins Bank" might be resurrected..... Had an account with it once. It was swallowed by Barclays in 1969... on Councillor Richard Kemp: Why Liverpool needs its own Bank | Bay TV Liverpool

  2. There are many former banks and mutual financial organisations in the region. Personally I do not favour creating another PLC owned bank that can go the way of Martins, Williams and Glyn's or the Southport and West Lancs one-swalled up by a bigger preditory ones. I'd rather it was owned by its saver and operated more like Caja Laboral http://en.wikipedia.org/wiki/Caja_Laboral Using local savings it has created 100,000 sustainable jobs on Councillor Richard Kemp: Why Liverpool needs its own Bank | Bay TV Liverpool


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