TUC conference says: take over the banks!

Submitted by Matthew on 12 September, 2012 - 11:04

TUC Congress passed a resolution calling for the public ownership of the banking system — the first sign of politics at the otherwise consensual gathering.

The resolution, proposed by the Fire Brigades Union (FBU), argued that the chaos created by the major banks and financial institutions “should be ended through full public ownership of the sector and the creation of a publicly owned banking service, democratically and accountably managed”.

Matt Wrack, FBU general secretary told Congress: “The failure of the banks is not simply about regulation, or lack of regulation. The problem is with ownership. Not just shareholder ownership, but private ownership of the banks. And we think the answer is for public ownership and democratic control of the banks. That’s the argument our movement needs to make in the period ahead.”

The resolution was supported by the big unions including Unite, which organises the most bank workers. It was opposed by some unions led by right-wingers such as Prospect, and a handful of others (although only Accord, a small finance union spoke in the debate against the resolution).

The TUC general council recommended voting for the resolution, although their significant reservations suggested they had only recommended acceptance for fear of not being able to carry the vote against. Outgoing TUC general secretary Brendan Barber spent most of his speech criticising the call for public ownership, firstly on the grounds that it would upset banks close to the unions like the Unity Bank and the Cooperative, and second because of the cost. A statement from the general council talked about the need for “diversity” in banking — TUC code for more competition and a profitable, capitalist banking system.

Wrack also argued that more regulation or a break-up of the banks would not make them operate in the interests of the wider economy, as their main objective would still be to make profits for their shareholders and bonuses for their top executives. He said the answer is public ownership and democratic control.

The labour movement has a big opportunity to raise the level of debate on the reasons for the crisis and what to do about it, putting basic socialist arguments for collectivism and democracy against neoliberal plans from both the Con-Dems and New Labourites.

The debate is clearly not finished within the labour movement and the passing of one resolution at TUC congress is a largely symbolic first step. But it could create an opening with the unions and the Labour Party to raise the idea of public ownership not just for banking, but for wider areas such as energy, transport and communications.

It is a debate socialists should join with relish.


Submitted by AWL on Fri, 14/09/2012 - 09:16

Public ownership of the banks

Congress notes the disastrous role of the banks over the past five years.

Congress condemns the scandalous levels of pay and bonuses for senior bankers, while workers are expected to pay for the economic crisis.

Congress condemns the interest rate-fixing by Barclays and other banks, which demonstrates again that the banking industry fails to operate in the interests of the majority of people.

Congress notes that despite the tax payer funded bail-outs and quantitative easing, the banks have failed to provide adequate lending and investment to assist economic growth and the creation of jobs.

Congress calls on the TUC to organise a thorough inquiry into the banking crisis. This should involve finance experts, trade unionists working within the sector and representatives of mortgage holders, small businesses and others affected by the crisis.

Congress believes that the de-regulated, free market model that has dominated for the past three decades has been exposed as a failure; a major change of direction is needed.

Congress believes the economic chaos and devastation sparked by the major banks and financial institutions should be ended through full public ownership of the sector and the creation of a publicly owned banking service, democratically and accountably managed.

Congress believes that the banking and finance industry should be developed as a key public service.

This new form of banking could play a central role in building a sustainable economy, investing in transport, green industries, housing, creating jobs and assisting the recovery in the interests of working people.

Add new comment

This website uses cookies, you can find out more and set your preferences here.
By continuing to use this website, you agree to our Privacy Policy and Terms & Conditions.