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Northern Rock

My Lords, the Government’s clear intent—this is why there is the 12-month clause—is to limit the activity beyond anything other than Northern Rock. The noble Lord said that we have heard from the Liberal Benches the first siren call for intervention in and political direction of the bank. He must recognise that I did my inadequate best to resist that siren call and said that I did not accept the contention from the Liberal Benches. The bank must be managed at arm's length from Ministers to meet the requirements. If the noble Lord is saying, ““Yes, but we already have in the proposals an indication of concern about the Northern Rock Foundation””, all I can say is that of course the Government and the public are concerned about the foundation. After all, it is a charity that the bank has supported for many years. It has an important role to play in the north-east. I resist the noble Lord’s contention that no one in the country is prepared to see that foundation supported apart from direct beneficiaries from it who live in the north-east. It ill becomes him to suggest that. In that one area, the Government have been concerned to safeguard what is widely regarded as an asset that the public values. On the more general issues raised by the noble Lord, we will have the opportunity to discuss the question of how the bank is to be managed. We will therefore be able to demonstrate the extent to which we will keep Ministers at arm's length and ensure that the business is conducted by reputable individuals who know the banking business and would not accept the degree of interference that the noble Lord suggests.