Northern Rock (Granite)

Part of Oral Answers to Questions — Treasury – in the House of Commons at 10:30 am on 6 March 2008.

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Photo of Yvette Cooper Yvette Cooper The Chief Secretary to the Treasury 10:30, 6 March 2008

Of course we were aware of the ONS classification, which was set out on the basis of the loans and guarantees provided to Northern Rock at the beginning, and not on the basis of the subsequent decision to take Northern Rock into temporary public ownership. The ONS approach is to look at issues of control, and it is right that it should do that. However, we have to take these decisions in the interest of the taxpayer. Safeguarding those loans and guarantees by taking Northern Rock into temporary public ownership was the right decision for the taxpayer. It would not have been the right decision to buy out Granite's bond holders. They take risks, and it is right that they should do so. Frankly, this is becoming another day, another policy from the Opposition. Now they want us to fork out to buy up Granite as well.