Northern Rock

Stephen Williams Excerpts

Monday 21st November 2011 Commons Chamber

[Mr Hoban]

The hon. Gentleman is well known for his business experience, but what we need is to get the best deal for the taxpayer and Northern Rock. The advice that we received from our independent advisers indicated that this was the best time. As I mentioned in my statement, we got a price-to-book ratio of about 0.8, which compares with other banks, which are currently trading on a price-to-book multiple of 0.5. That sounds to me like a good deal for the taxpayer.

[Stephen Williams (Bristol West) (LD)]

I welcome my hon. Friend’s confirmation that this is the best value for the taxpayer and injects a new competitive force into the high street. He said that this was a milestone in the Government’s journey of returning the other state-owned banks to the private sector. Will he agree to continue to work with me and others who have imaginative ideas in this area to ensure that all citizens benefit from that rather larger transaction?

[Mr Hoban]

My hon. Friend has championed particular ideas about the distribution of shares in RBS, and we listen to those views carefully. It is absolutely right to see this as a milestone towards the normalisation of the banking system. It requires a significant reform to regulation and to the structure of banking, which is a course that we are embarked upon.