Banking (Special Provisions) Bill

Part of the debate – in the House of Lords at 12:15 pm on 21st February 2008.

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Photo of Lord Davies of Oldham Lord Davies of Oldham Deputy Chief Whip (House of Lords), HM Household, Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords) 12:15 pm, 21st February 2008

As I have sought to emphasise, because of the nature of the relationship between Granite and Northern Rock, Granite is not the subject of this measure and is not part of this Bill. As Northern Rock exercises control over Granite, it means that Granite vehicles are consolidated on Northern Rock's group balance sheet; that is why they are there. This consolidation does not mean that the assets or liabilities of Granite are those of Northern Rock, or that Northern Rock is liable to Granite bondholders for the repayment of the Granite bonds. That is why Granite does not feature as part of the Bill. I sought to express this yesterday. The noble Lord, Lord Marlesford, has emphasised his view that my response at the end of the debate was inadequate. I sought to make the position clear at the beginning of the debate and I am taking the opportunity of Committee stage to do so now. I have also answered his question on Dolerite. I see that he is about to rise again.