THE GOVERNMENT IS OVERDRAWN ON ITS BANKING PROMISE - CABLE

9.05.00am BST (GMT +0100) Fri 23rd May 2003

Responding to the publication of the Office of Fair Trading's report on UK clearing systems - which found that consumers are still being ripped-off to the tune of £30 million a year from hidden charges - Vince Cable, MP - Liberal Democrat Shadow Trade & Industry Secretary - said:

"What this report clearly illustrates is the failure of Government to drive through reforms recommended in the Cruickshank report, and welcomed by the Liberal Democrats more than three years ago."

"It was apparent then that the banks were making billions of pounds in profits as a result of the virtual monopoly over the clearing system.

"The Government has done nothing to address this. Instead of introducing a regime to regulate the clearing system, the Government sits idly by while this multi-million pound rip-off continues to fleece customers."

ENDS

Notes to editors

· The OFT produced a report of its investigation into the bank clearing systems yesterday.

· It estimated the annual cost to consumers of "Float" - the time it takes for money to leave a paying account and find its way to a customer's account - to be £30 million a year.

· The Cruickshank report identified in March 2000 that there were a number of competition issues in the UK's main payment system markets.