Digby Jones warns against ‘unjustified kicking’ for City

Digby Jones, the trade and investment minister stepping down in the latest government reshuffle, has warned against imposing tougher regulation on financial institutions in response to the global financial crisis.

Jones gave what he claimed was his last presentation as a minister at last week’s Packaging Equipment & Processing Machinery Association (PPMA) show in Birmingham. The outspoken UK business champion and former director general of the Confederation of British Industry, argued that - apart from isolated cases - City financial institutions were crucial to UK business’ wellbeing.

“This is not a time for more regulation, it is a time for better imposed regulation.” said Jones. “That does not mean we should not make sure this does not happen again, or bring those people responsible to book; but it is time for a bit of balance.”

Despite what he called “staggering errors” and “instances of greed” that had been shown by some in the financial services sector, Jones said: “This is no time to give an important part of our economy an unjustified kicking.”

He added that although things were difficult at the moment, a vibrant and viable financial services sector was essential. “If you don’t have access to capital, manufacturing does not work … it is the blood that flows around the body.”

PPMA chief executive Chris Buxton also said: “Contrary to the views of many companies, this is not a time for cutting back on our sales and marketing.”

In a statement following the PPMA show released on Friday, Jones said: “I have made no secret of my intention to return to the private sector and I shall look forward to doing so later in the year. Although I am leaving government, I will continue to serve the interests of British business as a business ambassador and as a cross-bencher in the House of Lords. The UK Trade and Investment Team will always be able to rely on my support.”