Prime Minister's question asked in the House of Commons, by Malcolm Wicks (Labour). It was answered on Wednesday, 23 November 2011 on behalf of the Prime Minister.

Engagements

Question: Does the Prime Minister agree that the history of Northern Rock represents a kind of modern-day morality tale or play, in that here we have a decent, mutual and responsible building society, which is then privatised, then over-extends, then goes bust, is then bailed out by the taxpayer, and now, sadly, instead of returning to mutuality, is sold off dirt cheap to one of the brashest companies in England?

Answer: I was with the right hon. Gentleman for some of the way through his question, but let us look at the decision the Government have taken. First, we are selling a business that was costing the taxpayer money, and getting well over £700 million for that business. The second thing we are doing, which is in the interests of every single person in this House and everyone in this country, is to get another functioning bank and building society on our high street lending money. How many times do all of us go to our constituency surgeries and hear people say, ““I can't get a mortgage””, or small businesses say, ““I can't get a loan””? We need a good, new, healthy lending institution out there, and hon. Members should welcome the fact that it is going to be based in the north-east of England, as Northern Rock was.

Secondary information