Banking (Special Provisions) Bill

I am not in favour of nationalisation, full stop. What I am pointing out is that it will take a long time; indeed, Mr. Sandler said yesterday that it would take several years. That is not something that has been heard from the Chancellor's lips—at least not in public—but it is something that Mr. Sandler says. The hon. Gentleman was fairly acute in pointing out the dangers of nationalisation, telling the House that"““the policy of nationalisation would lead to a slow lingering death for the jobs of the Northern Rock workers, its assets and Britain's reputation as a major financial services centre, with my right hon. Friend the Chancellor cast in the role of undertaker””.—[Official Report, 19 November 2007; Vol. 467, c. 968.]" I therefore look forward to the hon. Gentleman's support in the Division Lobby tonight. The next point that I want to address is exactly what the Chancellor hopes to do to prevent the bank from unfairly competing in the market. He said yesterday that he wanted business as usual. However, he said at the beginning of his speech—this was when north-east Members suddenly woke up and paid attention—that there would be elements of the business plan that prevented the bank from competing on a commercial basis in a straightforward way and which prevented business as usual. We are talking about a Government-owned bank. It can borrow more cheaply than any of its competitors and can offer better savings rates and cheaper mortgages than any other bank. If the bank is operating on a strictly commercial basis, which the Chancellor said yesterday—[Interruption.] I know that the hon. Member for Blyth Valley wants Northern Rock to use the fact that it is backed by the Government to undermine every other bank and building society in the country, but the rest of us are concerned about the other jobs in the financial services industry. The Chancellor said that he wanted the bank to operate on a commercial basis. However, anyone who visits its website today will find that it is offering the most generous savings rate in its class and a 0.5 per cent. bonus for existing savers, and it is still offering those 125 per cent. mortgages that people cannot get in most other places. There are no plans for that to change. Ron Sandler said yesterday:"““We will continue to operate on normal commercial principles, both as a deposit-taker and a mortgage provider. On a day-to-day basis, nothing will change””." But to allow Northern Rock to compete vigorously as a nationalised company in a fiercely competitive mortgage and savings market is completely unacceptable. It will cost jobs in other banks and building societies, and do more damage to Britain's reputation as a home for financial services.