About time we created a national bank.

Byline: RUSSELLLUCKOC

The latest revelations concerning banks and the disgraceful way in which they have been manipulating the Libor figures, is just another blow to their collective respectability.

It would appear that countless businesses may have been sent to the wall, with many jobs lost. It may also be the case, that as there are no specific laws forbidding such operations, charges may be unlikely. However, it is plain for all to see, that those involved had no integrity whatsoever.

Successive governments have pleaded with banks to lend money to UK business applicants, to little avail. The Chancellor, George Osborne has made available large chunks of money, specifically intended for British industry, yet little has got through to the coal face. Those few that have been successful have had to pay relatively high interest rates, coupled with very heavy arrangement fees.

So I firmly believe that the time has now come for our government to create a National Bank. The sole purpose of which would be to deal with British industry and to channel through all the funds that can be made available. From day one of this Coalition Government, the Prime Minister has made it clear that he is looking to the private sector to create the jobs necessary to drag this country out of recession. This is not possible unless the lubrication of funds can be provided, and here, banks have failed.

Although the statistics suggest that this country is in recession, there are opportunities occurring. Oriental prices are rising, and there are question marks about the consistency of quality in some of the goods supplied, especially in the safety critical range of product. Buyers are starting to revisit British sources of supply, and this is reflected in the recent investments by various large automobile manufacturing concerns.

It is therefore essential government takes steps to ensure that loans can be made available. The banks have had their chance and have failed. The only way is to try something new, and the setting up of an institution that can provide funds quickly and easily is badly needed.

The Prime Minister wants to get the nation back to work.

If he really means what he says, then the time for pontificating is over, and swift positive action is required.

The setting up of a National Bank could provide the answer.

Russell Luckock is chairman of AE Harris