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King empathises with union members

BANK of England governor Mervyn King yesterday blamed financial firms and policy-makers for the economic crisis, admitting: “We let it slip.”

Addressing the TUC’s annual congress, Mr King told unions they were “entitled to be angry” about higher unemployment and the bail-out of banks.

He is only the second Bank of England governor to speak to the TUC in its 142-year history.

RMT union members staged a walk-out ahead of the speech.

The TUC congress, taking place in Manchester, has heard strong criticism of the Conservative-Liberal Democrat coalition’s economic policies, with delegates voting on Monday for joint industrial action if “attacks” on jobs, pensions and public services go ahead.

On Wednesday, the congress will also vote on plans to set up a “shadow commission” to monitor the salaries of the highest-paid company workers, similar to that established by the government to look into public sector wages.

In his speech, Mr King told delegates: “Recent times have indeed been turbulent. After a decade-and-a-half of stability, with rising employment and living standards, came the crisis and recession - the biggest economic upheaval since the Great Depression.

“Before the crisis, steady growth with low inflation and high employment was in our grasp. We let it slip - we, that is, in the financial sector and as policy-makers - not your members, nor the many businesses and organisations around the country which employ them.

“And although the causes of the crisis may have been rooted in the financial sector, the consequences are affecting everyone, and will continue to do so for years to come.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .