Written question asked by Lord Howard of Rising (Conservative), in the House of Lords. It was answered by Lord Myners (Labour) on Tuesday, 9 June 2009.

Banking: Bank of Scotland (Ireland)

Question: To ask Her Majesty's Government further to the Written Answer by Lord Myners on 7 May (WA 131), why, if the operations of the Royal Bank of Scotlandare a matter for the directors of the bank, Lord Myners disclosed details of the operation of the bank on 28 April (Official Report, House of Lords, col. 107); and whether this disclosure was in accordance with the framework document between HM Treasury and UK Financial Investments.

Answer: The framework document between HM Treasury and UK Financial Investments (UKFI) sets the key parameters for how UKFI will conduct its business, including: a clear mandate for UKFI to manage the investments commercially, and with a view to achieving an exit; a clear distinction between: commercial decisions, which are for UKFI to take within the context of a high-level investment mandate; and policy decisions, which are for Ministers to take; a requirement that UKFI will not intervene in the day-to-day management decision of its investee companies, and that the companies will retain their own independent boards, which will manage the banks and determine their strategy; and robust institutional arrangements for keeping UKFI at arm's-length from Government, centred on the creation of a heavyweight UKFI board which will take all major decisions relating to UKFI's business and its management of the investments. I can confirm that my comments were in accordance with this.

Secondary information

Type: Written question
Reference: 3779; 711 c139-40WA
Session: 2008-09
Related items: Banking: Scotland
Tuesday, 28 April 2009
Oral answers to questions
House of Lords; Banking: Scotland
Tuesday, 28 April 2009
Oral questions
House of Lords; Banking: Royal Bank of Scotland
Thursday, 7 May 2009
Written questions
House of Lords
Subjects: Treasury Royal Bank of Scotland UK Financial Investments
Link: View this Written question on www.publications.parliament.uk