Oral question asked in the House of Lords, by Lord Bilimoria (Crossbench). It was answered on Wednesday, 8 October 2008.

Banking: Lloyds TSB and HBOS

Question: My Lords, there is a saying that good judgment comes from experience and experience comes from bad judgment. What lessons have the Government learnt from the nationalisation of Northern Rock—which, after five months of indecisiveness, was nationalised in a rushed-through manner in three days? Here we are eight months later: we have no permanent major reform to the Bank of England, which is desperately needed.

Answer: My Lords, the Banking Bill has been the subject of very extensive consultation, and so it should be for a measure of such supreme importance to the British economy and the British people. I note that the noble Lord sustains his critical stance on the government action on Northern Rock. Others will think that the Government acted entirely appropriately. But all, even he, will rejoice in the fact that Northern Rock is beginning to pay back, ahead of time, its debts owed to the Government.

Secondary information

Type: Oral question
Reference: 704 c235
Session: 2007-08
Oral question type: Supplementary
Chamber / Committee: House of Lords chamber
Subjects: Consumers Banks Competition Protection Mergers Lloyds TSB Halifax Bank of Scotland
Link: View this Oral question on www.publications.parliament.uk