Banking (Special Provisions) Bill

Anyone who listened to the debate yesterday could not have failed to realise that many noble Lords are concerned about the prospect of nationalising a bank, something that has never been done before. We understand the reasons for it, even if we do not agree with them. But the Minister has brought forward a Bill which he says just provides for Northern Rock to be nationalised. If that is so, the Bill ought to refer to Northern Rock, and had that been the case, it would have been a hybrid Bill. The purpose of such a Bill, as my noble and learned friend Lord Lyell said yesterday, is for people to put their point of view—in this case, not only those being nationalised, but also those not being nationalised—in a committee with legal representation, because one party may be advantaged or disadvantaged in relation to the others. However, to avoid what is of course a lengthy process, the Government have produced this arrangement, which provides that for the next 12 months they can nationalise anything. This Bill is not for the nationalisation of Northern Rock, it is a Bill for the nationalisation of any bank or building society within the next 12 months, as the Government think fit. I agree with my noble friend Lord De Mauley that if this is just for Northern Rock, there is no reason why it should not be curtailed to a month because as we all know, there is a rush to get this through Parliament. But if it is required for longer than a month, of course my noble friend Lord Forsyth is right to ask why, and to ask what the Government have in mind. I do not believe that the Government have anything else in mind, but if that is the case, then I do not see why they cannot approve of it lasting for a month. With the greatest respect, I am horrified that the noble Lord, Lord Newby, thinks that it is a very good idea to keep this legislation for 12 months because the Government can nationalise anything that happens to go wrong. I do not think we are in that business.