Lack of competition is a result of Labour's banking shambles - Purvis

12.01.06pm BST (GMT +0100) Wed 23rd Sep 2009

Commenting on concerns raised by the Scottish Federation of Small Businesses (FSB) that small firms are suffering because of a lack of competition in a banking sector, Liberal Democrat Finance spokesperson Jeremy Purvis said:

"The serious concerns raised by the FSB are a direct result of the Labour Government's banking shambles.

"Alistair Darling and Gordon Brown swept aside their own competition rules to force through the Lloyds takeover of HBOS. This has led to a major reduction in competition in the market place.

"It has resulted in another giant, centralised bank that doesn't serve the needs of local people or small businesses. Liberal Democrats want to see these huge institutions broken down to give businesses the choice of smaller and more secure banks.

"It’s time that Ministers in both Holyrood and Westminster took action to get banks lending again.

"A good first step would be for Ministers to access European JEREMIE funding to help small businesses bridge their funding gaps.

"This is already happening in Wales and England, why can't the same be done in Scotland?"

Ends.

Notes:

Joint European Resources for Micro to Medium Enterprises (JEREMIE) has already been used by the Welsh Assembly to help struggling small businesses in Wales.

A board has now also been set up to oversee the distribution of a £125 million Brussels-backed JEREMIE investment fund aimed at helping small businesses in the North-East of England.