Greatrex: Arch Cru fight will go on in Westminster

The MP who this week had his calls for a government inquiry into the controversial £54m Arch cru investors' payment scheme dismissed by the Treasury, has said the fight for answers will continue in the corridors of Westminster.

On Wednesday, Labour shadow energy minister Tom Greatrex led a Parliamentary debate on the adequacy of the deal on offer from Capita, HSBC and BNY Mellon and the role of the Financial Services Authority in the fund range's downfall.

Backed by about 30 other MPs, he called on Financial Secretary to the Treasury Mark Hoban, who was present at the debate, to launch an immediate government inquiry into the failure.

Hoban rejected the request, saying no such inquiry has previously been undertaken by the government, and that it would be inappropriate to launch an investigation before the FSA had reported back on its own ongoing review of Capita's role in Arch Cru.

However Greatrex (pictured) told IFAonline the hour and a half debate represented "the start rather than the end" of MPs involvement with Arch Cru.

"The pressure for an inquiry won't go away. There is too much interest. Between us we will find a way to keep it on the agenda," he said.

"There is appetite there to keep pushing for an inquiry. There are various avenues we can pursue, including raising it in the Commons during Treasury questions."

The MP for Rutherglen and Hamilton West in Scotland called Hoban's response "weak" and unconvincing.

"The answers from the minister were far from convincing, especially when he said the government wasn't minded to have an inquiry because they haven't used that power before. That was particularly weak."

Greatrex said it was important the government addressed the Arch Cru debate to avoid a repeat of the losses suffered by investors in the future.

"This debate is particularly important for future regulation and the FCA [Financial Conduct Authority], which is currently in pre-legislative scrutiny. We will look into influencing that.

"To get the right regulatory regime for the future we need to learn lessons from the past. Now there is an opportunity to so. It is an opportunity I hope the government wouldn't miss, but at the moment I am not confident."