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Banking (S.I., 2008, No. 432)

I want to make some progress. Opposition Members have referred to the level of arrears as a result of Northern Rock's decisions. The level of arrears for Northern Rock has increased, just as it has across the market. However, it is still significantly below the Council of Mortgage Lenders average, so Northern Rock is in a very different position compared with other banks across the market. We know that Northern Rock had an unsustainable financial model; the bank needs to change its approach and it is right that it should do so. That is what the business plan does. In the end, the transfer order is about the decision to transfer. It is right to reflect on whether alternatives were available and whether they are still available. Opposition Members have asked us to oppose the transfer order, as they believe that the decision should be reversed—an utterly irresponsible approach at a time when the financial markets continue to be in global turbulence and when we face a continued credit squeeze in the markets. It was right to seek private sector alternatives, and we made no secret of the fact that we would have preferred such an alternative. We were not prepared to go with a private sector bid at any price—we were determined to protect the taxpayer—and that was the right thing to do.