Banking: Northern Rock

Baroness McIntosh of Hudnall Excerpts

Thursday 30th June 2011 Lords Chamber

[Lord Sassoon]

No, I will not confirm that to the noble Lord. The best value will be obtained for the taxpayer by conducting an exemplary sales process that explores all the options out there for the bidders. In the light of a transparent and competitive process, the best value will be obtained.

[Baroness McIntosh of Hudnall]

My Lords, going back to the question of the Northern Rock Foundation, I am certainly no expert on the sale of banks but I know how important the foundation is in the north-east. I was slightly troubled by what the Minister said about the commitment that has been made so far, because it appears to be a very short date. Could he perhaps be a little more enthusiastic, to use the word used by my noble friend Lord Borrie, about the importance of the foundation and put it more firmly on the agenda when it comes to issues of sale?

[Lord Sassoon]

My Lords, I am sorry if I cannot work up enough enthusiasm at 11am on a Thursday morning. The first thing to say is that not only has the foundation done good work in the north-east but its footprint covers Cumbria. We must not forget Cumbria. The previous Government agreed that Northern Rock would donate £15 million per annum to the foundation for a three-year period, 2008-10, and that commitment was honoured. Yes, the new agreement has an initial expiry date of December 2012, as I said, but it has the potential for a rolling one-year extension by mutual consent, to be agreed under certain terms. The door is open there, and it will be one of the things that I am sure prospective purchasers will want to take into account.