Andrew Bailey will take the top job at the Bank of England this spring, and he’s already got an open invite to Grimsby.
The former chief executive of the Financial Conduct Authority was appointed as Mark Carney’s successor just before Christmas, and takes up the prestigious role as governor in March.
But it was the extraordinary efforts he went to during his seven year stint as chief cashier of the Bank of England – the man whose signature appears on all bank notes – that endeared him to the town’s seafood sector, ensuring supply withstood the financial crash of 2008, protecting an industry and thousands of jobs here and in Iceland.
Mr Bailey worked with then Grimsby Fish Merchants’ Association chief executive Steve Norton to ensure the payments could be made to the North Atlantic nation when then Prime Minister and former Chancellor of the Exchequer, Gordon Brown, imposed a ban on cash transfers to the country. Reykjavik’s financial collapse played a significant part in the deepest recession of a generation.
Steve Norton headed up the FMA at the time, with £1 million a week being cleared through Barclays to pay Icelandic suppliers landing on the market.
“I was actually in Iceland when the collapse happened in the October,” Mr Norton said. “The value of the krona was falling as fast as the snow. We came back and it was Gordon Brown who invoked what was basically terrorist legislation that prevented funds leaving the 海角视频 to countries where such a collapse had happened.
“We were sending £1 million a week to Iceland, which in the wider scheme of things wasn’t a huge amount, but in respect of keeping people in business it was hugely important. We had to make sure payments went to Iceland for the fish to still arrive.”
Then Grimsby MP Austin Mitchell contacted then Bank of England governor Mervyn King “who he got on well with” and Mr Bailey and Mr Norton were introduced, having independently assured the Icelandic ambassador and business leaders they were “doing everything possible” to make sure the money got through.
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Mr Norton, who retired in 2016 after 15 years at the helm of Grimsby FMA, said: “Mervyn King could see the sense of what Austin was saying and it came down the chain to Andrew Bailey and I. We exchanged emails and I gave him some facts and figures about the situation and what it would mean to jobs, the local economy and those who supplied us. He was very understanding, he grasped it very well and helped to turn it around so we could make payments.
“We weren’t looking to invest, just to pay for the fresh fish, to satisfy the needs of business. He and Mervyn must have pressured the Treasury, seeing it was nonsensical , and we got to let this money go through. We were given the permission and the bank was notified, and it all went smoothly. It could have had serious ramifications for the industry had supplies dried up.”
The efforts have not been forgotten.
“It stood us in great stead,” Mr Norton said. “The Icelanders, even now – more than a decade down the line – appreciate what we did. It galvanised the special bond which exists between Grimsby and Iceland.”
Of Mr Bailey, he added: “It is an important position and I wish him well, and I am sure the industry does as well. He is looked upon as a safe pair of hands at the Bank of England, where he has worked for a long time. In a post-Brexit period we will be looking for financial stability, and I’m sure if he were to take the time to visit, he would be very welcome, and treated to some of Grimsby’s finest!”
Martyn Boyers, chief executive of Grimsby Fish Market, said Mr Bailey would be more than welcome to follow the recent footsteps of Prime Minister Boris Johnson and visit the auction in his new role.
He said: “When Gordon Brown instigated an embargo on monetary transfers to Iceland, suppliers wouldn’t send the fish without being paid, so there was a real danger of supplies being brought to a standstill.
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“I was involved, but the main instigator was Steve. He contacted Austin and he set it up for Steve to deal with Andrew Bailey. He circumnavigated the regulation to make sure we could pay Iceland, and that meant trade continued.
“It became a huge benefit, as then – because of the collapse of the Icelandic krona – fish took on more value. They could turn fish into sterling instead of krona, and that was very important to ensure they got paid.
“It was a potential crisis, at the time Icelandic fish was 65 per cent of the supply, and you are not going to last very long without 65 per cent of your trade. In the short term we wouldn’t have been able to survive.”
Iceland now accounts for 77 per cent of supply to Grimsby Fish Market, and ambassadors and other dignitaries frequently toast the special relationship the town enjoys with the North Atlantic nation.
“It will be fascinating to see a blast from the past appear in such a position,” Mr Boyers added. “It is a critical position, with the setting of the interest rate always a determining factor in our economic development. I think it is a good appointment because he has hands-on experience with business and industry. He did a particular service to us, and he’d be welcome here. Grimsby certainly proves to be quite the attraction!”
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