Northern Rock (Granite)
Philip Dunne challenges the Chief Secretary to the Treasury over the position of Granite in the nationalisation of Northern Rock.
Mr. Philip Dunne (Ludlow) (Con): The Chief Secretary told us in the debate on the Banking (Special Provisions) Bill that Granite was not being taken into public ownership-she has just confirmed that again now-and that it was not being guaranteed by the Government. Was she not aware that, in the week before that debate, the Office for National Statistics had determined that Granite's debts would be included in the public sector net debt?
Yvette Cooper: Of course we were aware of the ONS classification, which was set out on the basis of the loans and guarantees provided to Northern Rock at the beginning, and not on the basis of the subsequent decision to take Northern Rock into temporary public ownership. The ONS approach is to look at issues of control, and it is right that it should do that. However, we have to take these decisions in the interest of the taxpayer. Safeguarding those loans and guarantees by taking Northern Rock into temporary public ownership was the right decision for the taxpayer. It would not have been the right decision to buy out Granite's bond holders. They take risks, and it is right that they should do so. Frankly, this is becoming another day, another policy from the Opposition. Now they want us to fork out to buy up Granite as well.
