Government should stay out of the bonus debate

Prof Len Shackleton speaks to Voice of Russia radio

As news emerges that Stephen Hester of RBS will not take his bonus, Prof Len Shackleton, Economics Fellow at the IEA, takes part in a debate for Voice of Russia radio and says that government should not involve itself in the debate about bonuses. The important issue is that banks should return to the private sector - ideally at a profit to the taxpayer - and, if bonuses help motivate executives to do a better job, then the government should have no desire to block them.

Listen here (part 1, part 2).