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Banking (Special Provisions) Bill

Conservative Members need to understand that they are effectively arguing for Northern Rock to go under—either very rapidly because of the withdrawal of Government guarantees or because it was put into administration. On the Government side, we have made very clear the consequences of putting Northern Rock into administration at this stage. It would mean that creditors would have claims on collateral and they would be exercised. In practice, it would mean a significant risk both to the Bank of England's contributions and loans and to the taxpayer as a result of the guarantees that are being put in place. Given the current market conditions, it is important that we do not promote a fire sale of assets or effectively a sell-off at the bottom of the market. That is not in the interests of the taxpayer. It is important to promote the interests of taxpayers rather than the ideological approach of Conservative Members.