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>> during this week's question time, british prime minster david cameron answered questions on the banking scandal. including american banker bob diamond, the forformer ski of barclay. opposition questioned the prime minster on the situation. but the prime minster argued that a public parliamentary inquiry had been swift and desicive. members also challenge the prime minster about holding a eu refer dumb on the european union. this is about half an hour. >> order, questions to the prime minster. >> mr. speaker. mr. speaker i'm sure the whole house wish to join me in paying

tribute to the three servicemen that were killed in afghanistan. this morning, i should have meetings later today. >> i am sure the whole house will want to associate ourselves with prime minster's deepest condolences who were lost earlier. mr. speaker, crude prices rose 4-point of%. i am concerned by, can the prime

minster spare me the lecture and tell the host what you're telling about inflation. first of all, can i join the honorable lady what she said about the accident. she's absolutely right that our thought should be with the friends and family and the colleagues those involved. the circumstance still remain unclear. the investigation is ongoing and more details will be released in due course. it's a reminder of the risk our service personnel takes. on the issue, i would make the point that inflation is now strong in our country which is good news. in terms of food, the way to keep inflation down is to have a responsible monetary policy which is what we have in our

country. >> mr. speaker, would my honorable friend agree with me. while serious banking difficulties must be dealt with, it is vital that the importance of city of london and recognize any reforms does not damage assets of our country. >> my honorable friend does make an important point. we got to get to bottom what has happened. in doing that, we should bare in mind, richard lambert who carried out an investigation for the opposite who i respect great deal. he said this, the scandal means the required changes have been

tougher. going back to square one, would be a serious mistake. the economy cannot recover and the absence of a stable banking system. nothing can be more urging than that. we must get to the truth but we should listen to these expert opinions as well. >> mr. speaker, can i join the prime minster in paying tribute. they died in most tragic of circumstances. our hearts go out to their family and friends. i also join the prime minster in remark he made. mr.speaker, the banking scandal reveal teaching to small businesses. it comes other scandals in the banking system and continuing multimillion bonus

merry-go-round. >> first of all, let me say on the substance of the issue, there is no disagreement between us. this banking scandal is appalling. it is outrageous that homeowners may have paid higher mortgage rates and small businesses may have paid higher interest rate because of illegal activity in the city. people want to know that crime in our banks, crime in our financial services, will be pursued and punished like crime on our streets. as well as that, they want rapid action to make sure this cannot happen again. in my view, the most important thing it is swift and decisive. get going as fast as possible, report as fast as possible. transparent and open at every

stage. that's why i favor a public parliamentary environment. i want to legislate on this starting next year. >> mr. speaker, i do understand concerns about speed. there are concerns also the inquiry being talked about is far too narrow. when we know the problems go much wider. >> i believe there is a way forward we can agree upon. we have a two part inquiry that is constructed by christmas to report on the scandal. the second part is a 12 month at a much wider area of the culture within the industry. that satisfies his requirement but also the necessary requirement to wider practice in the city. would you agree to my proposal? >> listen very carefully to proposals from all sides. let me make three points in

response. first of all, on the issue of structure of banking and the future of banking, of course we set up the inquiry which reports and implements the inquiry which will separate investment banking from retail banking. the parliamentary environment is wider what he said. look at the culture of banking and my honorable friend confirmed that this morning. the third point i will make -- all of these points need to be looked at -- still considering whether to locate criminal investigation. there are dangers which might not be able to get under way. as i say, if you want to do as fast as possible, to get action as fast as possible, the way we suggest is right. we have to vote in the house the lords last night where the house

of lords voted a against a public inquiry. we made time available on thursday which hasn't happened before for an opposition motion to be debated and voted on and a government motion to be debated and voted on. frankly what matters more than a process is the substance. getting over this. i hope we can accept the result from thursday. >> mr. speaker, we were exactly the same position a year ago where initially you rejected the idea of a inquiry into the press scandal and he rightly changed his mind. in justifying this position, he said this, i don't believe there's any better process than an inquiry-led judge. he went on with the whole thing. mr.speaker, why have this approach for the press but wrong

in the scandal of the bank? >> there is a profound difference between the circumstances and the circumstances with this inquiry. because of course, the inquiry followed all series of unsuccessful and failed inquiries. on this occasion, we've had a very successful inquiry doctor the department of justice in america and the financial services authority which has uncovered the wrong doing. now what's required, swift inquiry, swift action and swift legislation and that's what you'll get from this government. >> mr. spiker, i do -- speaker the prime minster understood, the depth of the public concern. the depth of the lack of confidence that there have been. he says -- the inquiry he proposes can be greeted within essentially four months.

it's simply not realistic. i do think that i listened to his concern and i propose a way forward. i ask him again, a two part inquiry with a judge on a timetable by christmas and then looking at a wider issues. there are many issues about the culture and practice of the city. >> i do understand the public concern about this issue, which is why i want us to get on with it. frankly, it is this government that legislate to split the banks. it is this government that scrapping the agreement that failed so bad under the last government. it is this government that introduced the bank levee. this is getting on with it. we will see diamond questioned

upstairs this afternoon. what i would say to the honorable gentlemen, we are having a vote in the house of commons tomorrow. a vote on his motion and a vote on the government motion. clearly, if the opposition motion wins, there will be a full independent public inquiry. i would urge him to say now if the government motion is carried, he will cooperate with a full parliamentary inquiry. >> mr. speaker. i don't think the prime minster gets this on the depth of public concern. now, i do hope you will reconsider his position. he mentioned the inquiry and he says they are implementing the inquiry. i do say this. this commission said this about important issues come out in the last two weeks about the way

high banks products to small businesses. after lobbying by the bank, the government rejects very basic recommendation. >> first of all mr. speaker, i will not gate lecture from a party for 13 years. on his specific question, about the inquiry, first of all, let me repeat, this inquiry was set up by this government and implement by this government. they won't in the retail banks that we want to make more safe. let me say this to him.

if he wants a quick resolution to this, he must accept the outcome of a vote in the house of commons. i'm prepared to do that. why isn't he? >> mr. speaker. it is not the responsible the leader to answer. try to be good boys if they can. >> mr. speaker. if he wants a history lesson, this is what he chosen on the 28th of march, 2008. as a free marketeer by conviction, it will not surprise you to hear me say that the problem of the past decade is too much regulation.

doesn't it say all about the double standard of this prime minster? whenever these scandals happens, he is slow to act and he stand up for the wrong people. here is a party bankrolled by the banks. if he fails to order a judge-led inquiry, people will come to one conclusion, he simply can't act in the national interest. i have to say this mr. speaker, everybody can see what is happening here. >> order. members calm down.

let the answer be heard, the prime minster. >> the party opposite want to talk about absolutely everything apart from their record of 30 years of government. i have to say mr. speaker, we may find sense of shame. >> mr. speaker. today is a huge significant day for british scientists with the announcement of the discovery 6000 scientists worked on it worldwide and 700 from the u.k. and major contributions from the u.s. can the prime minster confirm this government commitment to science?

>> i think the honorable lady is absolutely right to raise this issue and also raise contribution to this extraordinary break through. extraordinary work done in the northwest of england. it is a very big step forward. we should congratulate everyone involved. while we had to make difficult cut, we preserve the budget. >> mr. speaker, the last 13 days has witnessed the bank. the bank is owned by rbs. we the people have 80% share. therefore government has a major say in what happens in the bank. 100,000 bank customers direct from the prime minster on issue. >> i quite understand why he

raises this on behalf of his constituents. what happened isn't acceptable. but the financial services or authorities have been monitoring this very closely. the lesson must be learned but i can say it will reimburse all customers for penalty charges of overdraft fees. >> mr. speaker, my constituents are losing faith in their banks. what they need from prime minster is reassurance that there will be no more political skeletons left by the labor party. >> what matters for his constituents and frankly everyone in this house, is we get to the bottom of what happened as quickly as possible.

we had a vote in the house of lords and have a vote in the house of commons and then we need to get on with it. to hold these inquiry and find facts let's get on with it. >> yesterday mr. speaker, 117 manufacturing jobs in my constituency on a rising turn of unemployment in north wells. could the prime minster confirm to the house that the gdp figures must be showed that it was worse than expected. requires change and actually because of his government policies. >> very much regret any lost of jobs including in his constituency. particularly it comes at a time since the election we seen 800,000 extra jobs in the private sector. i'm concerned about the economic performance in wells which over the last decade or more has actually fallen further behind the united kingdom.

>> thank you mr. speaker. a key part of the health bill is a change must be led by patriots. the dgh, the majority said they have no confidence in the proposed change by the trust. the vast majority of the public share that confidence. would the prime minster confirm that the local trust has to listen to the health and conditions and local people? >> clearly changes shouldn't go ahead. we'll be making an announcement shortly. but the good news if you look across the health service, in-patients and out-patient waiting is down.

adding to that rates are down, the health services are doing well. >> scottland hasn't carried by the been carrying out investigation and allegations in several banks. does the prime minster back that investigation and given the skill of public anger, would he back need for a independent? >> there are two important things here. we should allow all investigators and authority to carry out the investigation. we need to make sure they have the results as necessary to do that. then we have to consider the nature of the inquiry. the problem i think with the suggestion you make, as these investigations are ongoing, it's

actually easier to hold a rapid investigation within parliament than to set up an investigation outside of parliament. >> what message would the prime minster send to the emergency services, local authorities and communities across the northeast that swung into action so effectively when the region was hit by flooding next week. >> the first thing i would say is huge congratulations and thank you to the emergency services. when i was -- i think the other thing to notice, whenever these things happens, there's an incredible coming together of community and social action. i'm sure everyone on all sides of the house want to thank people what they done on others behind. >> the question of the european referendum. is if the policy of the prime minster -- is it the policy of the prime minster to be decisive

or is he not sure? the point is this. there are two things that are not right. the first is to hold referendum now. i have no idea what his party policy is. >> would my honorable friend agree that central to any reform of banking must be two things. first. all, the proposals we already working out to ensure people that can move their accounts, quickly, easily and cheaply. secondly, an absolute guarantee that government will never again bail out banks? >> i think my friend makes two very important points. on the first point, being able to move your bank account, that will be in place later this year. on the issue of bailing out

banks, we need to put in place mechanisms so banks can fail without calling on taxpayers to support them. that resolution was untouched by the party opposite. >> you have a record of destroying jobs and democracy throughout europe. the prime minster is failing resources to this country. when is he actually going to stop the dithering and allow the elections in this country. >> first of all, he should be

sitting on this side of the house rather than that side if he take that's view. >> i want to draw the attention away from banking. to the opposition, more important matters, children lives and my constituency. five children in my constituency has been involved in an accident. i would like the assistance of the prime minster to help me. >> i think my friend is right to raise a constituency case like this where so many people have lost their lives. i will certainly look at what he says. if i could help him to plead his case,ly pleased to do so. >> in this context, showed

lending businesses down by $1.7 billion. it is not clear that the politics aren't working? >> first of all, the credit easing policy, the national loan guarantee scheme is going to make available 20 billion pounds of extra loans. some of that money is already available. actually saw lending of small businesses go up in 2011. there is a difficult situation when you got banks that are very nervous about the economic situation but the treasury, the bank of england are doing all we can to get the money out of bank. >> if as a result of this shameful banking crisis, bank executives dismiss or forced are resign and the boards of their

banks fail to act appropriately, will the government do its best to try to ensure that the delinquents are not able to walk away with bonuses and severance pay? >> the father of the house makes extremely good point. it would be completely wrong for people leaving under these circumstances to get a bail. it would not be right. i very much hope that doesn't happen. in terms of what the government can do, what we will are going to do is legislate so that all paid deals are put two shareholders in a binding vote and those deals should include a severance payment. the party opposite has 13 years to do, we will do in two. >> since britains made gains of

155 billion pounds in austerity, why wouldn't the government charge those as capital gains. enough without any increase in public borrowing until able to generate a million or more jobs? which is a far better way to cut deficit through growth rather than through a failed slump. >> he was a minister in the government where the last government's capital gain the tax rule were paying less in tax. what we've done is actually lift the rate of capital gains tax to 28% to actually we have a fairer system. >> mr. speaker, people told me in their own creative ways that they like to learn together so they know many children in other countries never get that chance. as the chair of the high level panel, how will the prime

minster restart efforts to ensure all girl and boys around the world get to go to school? >> my friend raises an important point. it's a brilliant way of teaching young people the importance of shared responsibilities. our aid is currently supporting about $5.3 million. in 2014, he hope to up that to millions more people. we want schools, parents and teachers to join in this effort. >> in addition to what the prime minster said earlier in relation to the bank prices in northern ireland where businesses are denied basic banking facilities. can the prime minster talk to the hmrc to