Banking (S.I., 2008, No. 432)

As I said 10 seconds ago, the competitive framework that Northern Rock published today as part of its business plan also commits it to not appearing in the top three of the best-buy tables for the rest of 2008. The framework and the overall approach will be kept under review, as is right. I remind Members that we have always said that we would engage in detailed discussions with the European Commission to make sure that we are compliant with the state-aid approach. With regard to the overall financial position for Northern Rock and for the taxpayer, we have made it clear that such an approach gives us the best deal for the taxpayer, who already had exposure as a result of the Bank of England loan and the guarantees that were put in place. Had we taken the approach that Opposition Members set out, and tried to go for the fire sale of the assets that they proposed, there would be considerable risk to the taxpayer, and to the Bank of England loan, which as a result of the business plan is now being repaid.