Gemma Doyle
Main Page: Gemma Doyle (Labour (Co-op) - West Dunbartonshire)Department Debates - View all Gemma Doyle's debates with the HM Treasury
(13 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Hoban
That is right. We have a significant new entrant in the financial services market that is prepared to buy Northern Rock, to invest in the future of the operations in Gosforth and to provide job security there. It is a vote of confidence. It demonstrates that there are people out there who want to be part of our financial services market and who want to offer a good deal to consumers.
Gemma Doyle (West Dunbartonshire) (Lab/Co-op)
Can the Minister guarantee that the Government will get back the £150 million that they are lending to Virgin and, if so, when?
Mr Hoban
What we put in place with Virgin Money is a capital instrument which is an important part of its financing structure, and the terms of that instrument will be set in place shortly. It is important to recognise that we want to see a well capitalised bank there. The FSA will look very carefully at the structure of Northern Rock and its ownership. As I said, Virgin operated a business model whereby it has capital levels which are much greater than those of some of its peers. That is a welcome sign that Virgin takes financial stability very seriously indeed.