Ed Balls and his praise for light-touch regulation in the City

As Caron Lindsay pointed out in her write-up of Nick Clegg’s interview with Andrew Marr yesterday morning, the question of Ed Balls’s record in government compared with Labour’s current policies is likely to become all the more pointed now that Balls is back in an economic role:

There’s no sign of timidity in the Coalition camp at the appointment of Ed Balls as Shadow Chancellor. It’s clear that no opportunity will be lost to remind people of his culpability in the current mess:

[Clegg said to Marr] Labour never owned up to their responsibility. Ed Balls as Minister for the City was lauding light touch regulation. We’re entitled to ask questions over Labour’s record. Who let the housing market become like a casino? Who let bankers gorge themselves on massive bonuses?

Perfectly reasonable questions in my view.

These sorts of points have been making the rounds for a few days, so I thought I’d take a look at Ed Balls’s own words, in this case a speech of his from September 2006 the full transcript of which is up on his website. Here’s a sample:

In my first speech as City Minister at Bloomberg in London, I argued that London’s success has been based on three great strengths – the skills, expertise and flexibility of the workforce; a clear commitment to global, open and competitive markets; and light-touch principle-based regulation…

Most recently in this decade we have been determined to respond to events and new challenges and enhance London’s global standing and light touch regulation…

Today our system of light-touch and risk-based regulation is regularly cited – alongside the City’s internationalism and the skills of those who work here – as one of our chief attractions. It has provided us with a huge competitive advantage and is regarded as the best in the world…

The Government’s interest in this area is specific and clear: to safeguard the light touch and proportionate regulatory regime that has made London a magnet for international business…

We must ensure that all new regulations are implemented in a sensitive and light touch manner…

And not to mention:

[The Labour government] will outlaw the imposition of any rules that might endanger the light touch, risk based regulatory regime that underpins London’s success.

This speech was not a rare exception but was part of a consistent pattern of rhetoric and (in)action. Somehow I don’t think Ed Balls will be talking up his own record too much in his new job…