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Opposition parties want unified response to crisis

30/09/2008

Conservative leader David Cameron called for a bipartisan approach to the economic crisis in a surprise address to the Tory party conference in Birmingham today.

Mr Cameron said that, given the current concerns about the world economy, today was not the day to talk about those proposals. Instead he said the Conservatives would try to work with the government to restore confidence in the financial system.

He called on Gordon Brown to accelerate current legislation designed to save failing banks and savers' deposits and bring both bills before parliament next week where they would have the full support of the Conservatives.

Both bills have until now been held up in parliament over two key issues – the size of savings deposits the government is willing to guarantee in the event of a bank failure and which authority, the Bank of England or the Financial Services Authority, should make the decision as to when to bail out a failing bank.

Mr Cameron said that the Conservatives would "not be playing politics with this".

It was easy to see why people were angry about the financial crisis, he explained, before adding: "Let's get out attitude to financial services right".

"There will be a day of reckoning but today is not that day."

Liberal Democrat leader Nick Clegg called on Mr Cameron and prime minister Gordon Brown to meet to discuss the crisis.

In a letter to his opposite numbers written after last night's vote he wrote: "Vince Cable [Lib Dem economics spokesman] and I are working on a number of ideas, from stemming repossessions in the housing market to re-regulating the banks in the City of London, which we would like to put forward for all party discussion.

"Surely if all parties were to put forward their own ideas we would be more likely to come up with the best solutions available?"

"All politicians of all parties now owe it to them to put their interest above that of party political advantage."

Mr Brown has not yet commented on whether the bipartisan approach is welcome. But he said the US Congress' vote to reject the $700 billion (£380 billion) rescue package last night was "very disappointing".

"The governor of the Bank of England, the chancellor and I will take whatever action necessary to ensure continued stability for Britain," he added.

Speaking on the Today programme earlier today, Mr Cameron insisted he had acted to work with the government as a "responsible opposition" on issues like Trident, school reform and impending banking legislation.

"There's a substantial point here: it may be necessary to take important steps to provide financial stability and people will want to see cross-party support," he said.

Mr Cameron remained critical of the government, however, after his shadow chancellor George Osborne's scathing attacks on Gordon Brown in his speech to the Tory conference in Birmingham yesterday.

"For the last ten years we've had a situation where there hasn't been anyone to call time on bank lending," he added.

"You've got the Bank of England making the big decisions on interest rates, the FSA doing the regulation about financial products, but it's that piece in the middle: is the overall leverage of debt in the economy getting out of control?"

Mr Cameron refused to be drawn on whether the Tories would nationalise a major British bank if it faced collapse. But he sought to emphasise the difference between an institutional failure and a systemic failure, saying both taxpayers and the system need protecting where necessary.

"There are dangers for the parties of the left which is to use this as an opportunity to trash the whole system. There are dangers to parties of the right – if they took the view that regulation is always wrong that is a crazy thing to do," he said.

"That is something the Conservative party does not believe. A free market system does need rules. What matters is, can we put those rules in place in a way that makes sure our system works well but provides greater stability?"