RBS 'should finance sustainable projects'
RBS stands accused of financing projects linked to human rights abuses and climate change
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Monday, 30, Nov 2009 12:00
By Emmeline Saunders
Forty public figures including MPs, academics and anti-poverty activists have signed a letter to Alistair Darling to make the case for publicly owned banks to invest in sustainable projects.
The campaigners, backed by the World Development Movement and PLATFORM, are asking the chancellor to explain where the bail-out money has gone.
The Royal Bank of Scotland (RBS) was bailed out a year ago, leaving the public a majority shareholder. The group wants Mr Darling to force the bank and other taxpayer-funded banks to help pay for Britain's transition to a low-carbon economy which could provide "millions of green jobs and better public services".
In the letter, the signatories criticised UK Financial Investments (UKFI), the company which manages the government's shares in bailed-out banks, for its lack of action on environmental issues.
"The inaction of the Treasury and UKFI on these issues not only contravenes institutional shareholder best practice, but ultimately works against the government's policy objectives on a range of issues of immediate concern to voters, including job creation, energy, healthcare and climate change," the letter argued.
The campaigners have accused the Treasury of failing to stop public funds being used by RBS to finance climate change and alleged human rights abuses in coal-mining and oil exploitation projects in Wales, India and the Democratic Republic of Congo.
Kevin Smith, climate and finance campaigner at PLATORM said: "The UK government claims to a 'world leader' on climate change, but it is allowing public money to be used to finance companies that are carrying out climate-trashing projects around the world.
"We should be using RBS as a public institution to finance renewable infrastructure and green jobs rather than bankrolling coal, oil and gas all over the world."
Since its bail-out, RBS has helped loan an estimated £10 billion to coal, oil and gas companies, including £6 billion to energy giant E.ON.
Julian Oram, head of policy at the World Development Movement, said: "This catalogue of harmful bank investments paid for by the UK taxpayer puts the government to shame.
"Public money pumped into RBS and other bailed-out banks over the last year is paying for some of the most damaging mining and fossil fuel projects around the world.
"These projects will have untold consequences for some of the world's poorest people, while failing to deliver any long-term benefit to the British taxpayer."
The campaigners, including author Iain Banks, Green MEP Caroline Lucas and three MPs, have also started legal proceedings against the Treasury for allowing public money to be put into the bank without the proper environmental and human rights assessments.