02/07/2012 Newsnight Scotland


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can I have done things differently? What can we have done differently?


On Newsnight Scotland, as the parliamentary inquiry into the


latest banking inquiry -- scandal is announced, does it go far


enough? And the changing role of charities,


how the voluntary sector says it will pick up the slack left by


public sector cuts. Politicians agree there should be


an inquiry into the banking system, it is just what form that inquiry


should take up their Robert Quick seeing eye to eye on. Today the


finance secretary John Swinney added his calls for a full


independent investigation as to who knew what and when in the rate


rigging scandal. In a moment we will be speaking to Mr Swinney.


Since the crisis in front -- 2008, public trust has been shattered in


the banks. The bail-out of the Royal Bank of Scotland, HBOS and


Lloyds TSB cost the taxpayer �36 billion. In exchange, the banks


were supposed to clean up act. But there are still revelations coming


thick and fast of a culture that has grown up. Barclays is that make


-- latest bank been drawn into the scandal, with the manipulation of


interest rates. We propose that. propose that Parliament do at --


form an inquiry into banking industries. It will have a joint


committee drawn from the Commons and the Lord, chaired by the chair


of the Treasury Select Committee. He and his committee have been


quicker off the mark in investigating the issue, and we


want their hearings to proceed. Labour says politicians


investigating bankers will not win the public background. The Treasury


Select Committee tried this in 2009. Labour says only an independent


inquiry overseen by a judge, like Lord Leveson is doing into the


media, will do. We will vote for an independent and open public inquiry,


not an inadequate and weak plant cobble together over the course of


this morning. The independent inquiry is what our constituents


want, and it is the only way to achieve a lasting consensus on


reforms for the future. Speaking to Children's BBC, the Deputy Prime


Minister said. Banks used to be the jewel in the crown of a country,


and now they are a source of embarrassment and shame and people


need to take responsibility for the things that went wrong because they


went horribly wrong. As for the interest rate affair, the bankers


may not get out of jail free at all. Barclays may have been fined �290


million so far, lost their chairman and chief executive will appear


before the Treasury Select Committee on Wednesday, but a


statement on the serious Fraud Office says the issues are complex


and added it is considering whether it is both appropriate and possible


to bring criminal prosecutions. For Scotland, the financial sector is


hugely important. Today the finance secretary called for a full and


immediate independent inquiry into a banking malpractice, and its


impact on consumers and businesses. Unless the industry can regain


public trust, who knows where all this will aimed?


John Swinney, the finance secretary, is live in Dundee. To start with


the inquiry, is that as for an independent as you would like?


is a welcome step, but it is not nearly as much as is required in


the current circumstances. I think what we have seen in the Leveson


style inquiry is an ability without fear of favour to get to the nub of


issues that have been concerning members of the public about their


his relationships around the media and the collection with politics. -


- connection with politics. What we need is the level of public concern,


it has been very strong around the banking sector but it has reached a


new height of the course of the last few days with the Barclay's


issues and the interest-rate fixing. We must have a very full and


independent public inquiry that can scrutinise all of the issues


involved here. Politicians need to be in front of an independent


enquiry answering for the failure that they exercised over the


regulation of the banks in 2008 and other stages, and principal amongst


those must be the former Chancellor Alistair Darling. That was a time


when you and your colleagues in the SNP were calling for a light touch


regulation, and criticising the UK government for gold plating. What


we were calling for was appropriate regulation which guaranteed the


solidity and security of the financial sector. What was not been


delivered by the regulatory regime that has been presided over by


Alistair Darling and Gordon Brown was precisely that. Which you make


no criticism of prior to the banking crisis. What we find now is


people have got to be held to account for the issues they were


presiding over when they were in office, when they had access to


information and briefings. As an opposition politician at the time,


would you put your hands up and accept you got it wrong as well?


Lots of people have lots to learn about the approach and relation to


the much as services, but what is an important starting point is


holding to an account people like Alastair Darling and Gordon Brown


who presided over this fiasco of regulation in the financial


services sector and did not deliver the protection that members of the


public would expect. That is why an independent inquiry is essential to


provide the necessary weight and scrutiny to get the bottom of bad


vamp -- failure. Will the SNP MPs at Westminster join Labour in


voting to block the parliamentary inquiry that is being proposed?


approach taken by my colleagues in the House of Commons will be set


out in the cause of the parliamentary scrutiny of these


issues. You do not know whether they support the inquiry or not?


What we have said clearly is we believe there should be at fault,


public independent inquiry into the process. To begin the process of


rebuilding public confidence... Would you like there to be


prosecutions? There should be prosecutions if a criminal, if


there is a basis for those prosecutions to take their course.


We have made it quite clear in Scotland if there are any issues


that the crown of is invested, that is what should be done. The same


applies to the Serious Fraud Office, and any scrutiny that is required


to establish if criminal acts have taken place, and there should be


criminal prosecution, is an essential foundation of building


public, since -- confidence in the regulatory system and rebuild


confidence in the banking sector which has taken a shattering blow


as a consequence of the last few days. The Serious Fraud Office is


considering its position. Two you know if the economic crime office


in the Crown Office for Fine Scottish police are looking at


launching an inquiry? The Crown Office will explore any issues that


have to be assessed, they will act independently of ministers,


responsible to the lord advocate. It is appropriate that


investigations are taken forward on that basis by the Crown Office.


there any at the moment? I am certain that the Crown Office will


be exploring any issues that are relevant to be explored in relation


to the possibility that criminal conduct has been undertaken in this


respect. That is an essential part of rebuilding public confidence in


the banking sector which has been to a devastated by the events of


the last few days. Do you agree with Nick Clegg that our banks,


including Scottish based banks, that -- are a source of


embarrassment and shame? We have got to be careful with the language


that he has used. There have been significant mistakes made in the


banking sector over the last number of years, many of those issues have


been confronted in the course of the events, as 2008, particularly


in relation to RBS and HBOS. The particular examples that have taken


place in relation to Barclays and the interest rates Council of of a


different order. -- the interest rate scandal are of a different


order. These are not just mistakes that had been made, these are


malicious and calculated act to try and deceive the market and deceive


the public. With consequences for the public. If you are so concerned


about... In those circumstances, those different -- issues are or a


different order and must be treated differently. If you are so worried


about these issues and the inability of the current system to


properly regulate our banks, why are you and your colleagues in the


SNP proposing to keep a UK-wide system of regulation if Scots vote


for independence? We are not voting or ordering for the current state


of play. What we are arguing for is an appropriate regulatory


environment for the interests of Scotland, that is why we have


established the Fiscal Commission which is led by some eminent


economists and advisers to provide exactly the appropriate


circumstances and regime of the regulation of the financial-


services sector in Scotland. What we will do is take time in the cold


light of day to explore what the best result for Scotland is. So it


might be different from the rest of the UK? What the events of the lot


today tell us quite clearly is we have got to get those regulatory


regimes correct, in the interest of the people of Scotland, and that is


what the Fiscal Commission in Scotstoun will do.


Charities say they are facing growing pressure to fill the gap


left by cuts in the public sector. Around three-quarters are reporting


a rise in demand for the services while at the same time reporting a


tougher struggle to -- get funding. We have been talking to one family


and one fundraiser. You are cheeky! Two year-old Harry


suffers from a severe form of epilepsy. The seizures can come at


any time of the day or night. But Harry's parents can now sleep more


easily thanks to a special sensor in Harry's bed. This is the centre,


there are two of them which were placed under the mattress. If there


is a certain amount of movement, an alarm alerts his parents.


benefit because we are able to get a good night's sleep, and it is


also beneficial to Harry because it detect a seizure, and the alarm


goes off, we are able to get to him. If we did not have that, there are


seizures that we do not catch which could be fatal. These sensors have


given Harry's mum and dad peace of mind but they have not been paid


for by the health-service, but by a charity. A charity which has raised


millions. This is a photograph of Muir. Founder Ann Maxwell's Sun


Muir has the same condition as Harry. We have some way towards �8


million we have raced, I do not keep a running total amount every


event adds more. We have funds from a variety of sources. Many


charities are facing a twin challenge. It is getting harder to


raise money while the demands for their services are rising. More


than three-quarters of Third Sector organisations expect the demands


placed on them to increase in the next 12 months, but nearly one 5th


expects staff among them -- numbers to fall. The state of the economy


has made fund-raising even more difficult. 62% of smaller charities


saw their income drop between 2009 and 10, while 40% spend more than


they received. Even Ann Maxwell has found fund-raising harder.


probably work two or three times as hard to achieve the same as vote.


The answer is to keep your head down, keep working hard, and keep


your eye on the course. In Scotland we do not hear much about the Big


Society but there is an ongoing debate about just what role


charities and volunteers should play, complementing services funded


by the taxpayer. For there has been an indication in writing from the


Government that the NHS would like to step in and help us provide a


lot, but the funding realistically is not available in the short-term.


It would be my dream come true that we become redundant on this one.


Ann Maxwell's story may be described as inspirational by some,


and her work has helped many children like Harry. But the


charity -- the problems facing many charities are intense.


Her Martin Sime is the chief executive of the Scottish Council


for Voluntary Organisations, the National body for Scotland


charities. Is part of the problem that charities have become too


large to an extent and delivery arm of the state? There is all kinds of


different wishes between charities and government and local government


and the health staff -- service. All sorts of relationships.


Charities add value in a number of different ways, sometimes they get


100% funded for that and sometimes they get no funding whatsoever.


There are many points in between. As your film showed, there are many


brilliant project and great ideas that charities are doing and most


charities are struggling at the moment. Is at least some of that


work, can it be considered as the icing of the cake, the sort of


service that we can afford in good times, or is it all essential?


depends who you are and the issues that motivate you. The great thing


about today's voluntary sector is it is done so many different things


in different ways. It is motivated by people who want to make a


difference to the society, there chimp -- their community, and to


individuals so there are people doing fantastic work. Some of it


receives support from the state and some of it receives support from


the public. We need as much support as we can get right now because


more people are turning to charities for help. Across the


sector, how hard is it getting? is getting really hard. Just this


year we have got to 60% increase in people seeking funding advice from


us, but there is very little new money around. It is getting very


competitive. Charities are struggling because there are more


people needing help from charities, more unemployment and homelessness,


more debt, our society is in trouble here because the economy is


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