UK PLC is pleased to announce the successful outcome of its recent international negotiations with other country PLCs. Some of them began the discussions sceptical about the wisdom of our strategy of seeking to maximise both borrowings and losses. Despite this, I am delighted to report that all agreed that international bodies should support any national PLC following such a policy with additional lending to them when the money runs out at home. This is a most important development, designed to reduce any external constraint on our policy. It was also good to see the CEO of the very powerful US PLC following a similar approach to our own and offering us warm words of encouragement. Their level of borrowing far exceeeds our own, but if you adjust for the relative sizes I would point out that we are still well ahead in building debt.
Meanwhile we continue to make progress with the core strategy. Recently we added the toxic assets and more risky investments of Dunfermline to our portfolio, taking us to controlling the risky assets of six banks. All but one of these, the original LLoyds, have plenty of scope to add to the total losses, and should need extra support in the future. We continue to add staff to increase our wage bill, and the unfunded pension liabilities are increasing at a satisfying rate. The pensions bill will continue to soar from the increases in numbers of people on the payroll, and from the public sector pay rises we are putting through. Do not worry about the recent rally in share markets which might apparently start to cut the deficit in the funded schemes. By keeping gilt yields down through our policy of quantitative easing we can ensure pension funds need even more capital to balance their books, keeping the deficits up.
I am sure you will agree the MP s who help us implement this strategy deserve a pay rise for what has been the most successful period ever in our history at boosting public borrowing and spending in this unique way. I do hope you will also agree with the Chairman of our crucial RBS subsidiary that criticism of that company has been overdone. I find it especially disappointing that their inspired decision to boost their pension deficit and our borrowing in order to pay a decent pension to their former CEO has attracted so much adverse comment. You should expect more such moves, as they show just how serious we are to implement our core stragey whatever the noises off.
I will be reporting soon on the growing success of our strategy in the social housing area. We have established a bridge bank to handle the loans of Dunfermline in this overextended sector, and look for more news to come on the build up of debt here.
We have decided to allow some of our employees in the public sector led by the MPs more time off over Easter in gratitude for their efforts.