Oral question asked in the House of Lords, by Lord Bilimoria (Crossbench). It was answered on Wednesday, 26 November 2008.

Banking: Northern Rock

Question: My Lords, we were given to understand that Northern Rock was nationalised to prevent systemic failure. We were also given to understand that it was nationalised to protect jobs in the region and in Northern Rock and to save the taxpayer money. Can the Minister confirm what percentage of jobs have been lost at Northern Rock since the nationalisation? Furthermore, I heard the Government say that they might be making a profit for the taxpayer from Northern Rock. Can the noble Lord confirm what losses have been made at Northern Rock since nationalisation?

Answer: My Lords, I do not have the information that the noble Baroness, rather the noble Lord, Lord Bilimoria—I got that wrong again, Lord Barnett, didn’t I?—seeks on redundancies, but I will communicate with him in writing. The essential intention in taking Northern Rock into temporary public ownership was to stabilise the banking system and to reassure people that a deposit placed with a British bank is a safe deposit.

Secondary information