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Northern Rock

I start with the Conservatives. The idea that if Northern Rock is forced into administration or nationalisation it is a disaster for Government policy is absolute nonsense. That is not an indictment of the Government; it is a market failure in dealing with a difficult situation in our banking system arising from weaknesses and faults in the American banking system. Let us have none of that nonsense. A real problem has to be faced and I expect a sensible Opposition to look at the real options and back them rather than try to make party politics from them. On the subject of party politics, the Liberal motion says that"““the Chancellor chose not to recognise the importance of Northern Rock as a large employer in the North East amongst his principles for assessing Northern Rock proposals””." That is absolute nonsense—absolute rubbish—and it is not just me saying that, as I shall explain. If the Chancellor had no commitment to the future of Northern Rock and its vital importance to the economy of the north-east and jobs in the north-east, why did he give the depositors guarantees and almost immediately provide loans for the business to keep it from insolvency in September?