Written question asked by Lord Beecham (Labour), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Wednesday, 13 July 2011.

Banking: Northern Rock

Question: To ask Her Majesty’s Government whether, in any future sale or disposal of Northern Rock, they will impose as a condition that the Northern Rock Foundation should continue to receive long-term financial support from the bank at least to the level currently required.

Answer: The Government appreciate the good work that the Northern Rock Foundation has been doing in the north-east and in Cumbria. Any purchaser would inherit the current obligation to fund 1 per cent of Northern Rock's pre-tax profits to the foundation through to the end of 2012 with the potential for a rolling one-year extension, by mutual consent. As the sale process has only recently been announced, it is too early to speculate on any outcome but it is expected that any bidder will think very carefully about the role of the foundation in the future.

Secondary information