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

I caution the hon. Gentleman against making decisions on the basis of speculation about different alternatives. The clear view of the tripartite authorities was that there was not a viable private sector alternative, and we spent time seeking such an alternative and seeking private sector bids. However, we have not received an appropriate private sector bid that meets the terms that we require to ensure that we get a good deal for the taxpayer. It is right that we should make such a requirement. Transferring Northern Rock into temporary public ownership, by contrast, means that the taxpayer will receive any upside from a future sale of the business, which better aligns risk with reward.