Northern Rock

Stephen Mosley Excerpts

Monday 21st November 2011 Commons Chamber

[Mr Hoban]

We were dealt a hand by the previous Government. We inherited their ownership of Northern Rock. We inherited their holdings in Lloyds and RBS. Our judgment was that this was the right time to sell the business. The deadline imposed upon us by the European Commission acted as a spur to this. Looking at the prospects for Northern Rock under state control and comparing them to the prospects for Northern Rock under Virgin Money’s control, most sensible people would say that it was better that Northern Rock was owned by Virgin Money than by the state.

[Stephen Mosley (City of Chester) (Con)]

The employees of Northern Rock were cheering last week, but is this not also a vote of confidence by Virgin Money in the economy of the north-east and in the Government’s handling of the British economy as a whole?

[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.