Shadow housing minister Nigel Waterson has attacked the Council of Mortgage Lenders for caving in to Government pressure over seller's packs.
He accuses the CML of “holding up the white flag” to senior officials at the Depart ment of the Environment, Transport and the Regions, who ran the Bristol trial of the packs last year.
He is planning to raise the issue at a Parliamentary legislative committee this week when he will show the committee a letter sent by CML director general Michael Coo gan to lenders, which asks them to back him and the CML in taking a less hostile app roach to the pack proposals.
The letter, revealed exclusively in Money Marketing on January 4, shows how DETR pressure convinced Coogan that continued opposition to the packs could “damage the CML's working relationship with officials”.
The Tories are likely to use the letter to demonstrate how the Government is putting pressure on the industry to get behind the proposals even though many lenders have serious reservations.
Waterson says: “I think it is a great shame they are holding up the white flag at this early stage. They have clearly caved in to ministers and officials. I plan to raise this at the committee next week.”
CML head of external aff airs Sue Anderson says: “It is not a question of capitulation, it is getting on with the real world and making sure we get the best result from what is available.”
Coogan letter, p16-17