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| Northern Rock plan debated by MPs | Northern Rock plan debated by MPs |
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| MPs have begun debating the nationalisation of the Northern Rock, as it emerged the bank's new chief executive is a non-dom. | MPs have begun debating the nationalisation of the Northern Rock, as it emerged the bank's new chief executive is a non-dom. |
| Ministers want to put the troubled bank into "temporary public ownership" in the hope of finding a long-term buyer. | Ministers want to put the troubled bank into "temporary public ownership" in the hope of finding a long-term buyer. |
| This has prompted Tory calls for Chancellor Alistair Darling to resign. | This has prompted Tory calls for Chancellor Alistair Darling to resign. |
| Meanwhile the BBC's Robert Peston said Ron Sandler, the Rock's new boss, is a non-dom with a German passport who pays tax in the UK only on his UK earnings. | Meanwhile the BBC's Robert Peston said Ron Sandler, the Rock's new boss, is a non-dom with a German passport who pays tax in the UK only on his UK earnings. |
| The Banking (Special Provisions) Bill to nationalise Northern Rock was published on Monday and is expected to become law by the end of Thursday. | The Banking (Special Provisions) Bill to nationalise Northern Rock was published on Monday and is expected to become law by the end of Thursday. |
| New competitor on the block | New competitor on the block |
| It will spend one day in the Commons going through all its stages and at least one day in the Lords, where governments are less able to force the pace of bills. | It will spend one day in the Commons going through all its stages and at least one day in the Lords, where governments are less able to force the pace of bills. |
| Commons leader Harriet Harman said the Commons would consider any amendments made in the Lords on Thursday and the Commons would be kept going until the bill was passed. | Commons leader Harriet Harman said the Commons would consider any amendments made in the Lords on Thursday and the Commons would be kept going until the bill was passed. |
| Liberal Democrat support for the emergency law means it is likely to be approved. | Liberal Democrat support for the emergency law means it is likely to be approved. |
| An independent figure will then be appointed to value the bank's shares and decide how much compensation shareholders will get. | An independent figure will then be appointed to value the bank's shares and decide how much compensation shareholders will get. |
| But in the Commons, Phillip Hammond, Tory shadow chief secretary to the Treasury, said his party did not support the proposed nationalisation and argued that the time being given to the bill was insufficient. | |
| However, he said if the legislation was to go ahead, "we want to make sure that it's workable, that it is as fair as possible, that Northern Rock will be managed without political interference". | |
| Simon Hughes, for the Lib Dems, said it was "just not reasonable" to ask MPs to deal with all the bill's stages in one night. | Simon Hughes, for the Lib Dems, said it was "just not reasonable" to ask MPs to deal with all the bill's stages in one night. |
| However, Chief Secretary to the Treasury Yvette Cooper defended the bill's timetable, saying the measure was "being brought forward in very unusual circumstances". | However, Chief Secretary to the Treasury Yvette Cooper defended the bill's timetable, saying the measure was "being brought forward in very unusual circumstances". |
| The running of the bank and any restructuring will now be the responsibility of City trouble-shooter Ron Sandler, who will be paid £90,000 a month for taking on the role. | The running of the bank and any restructuring will now be the responsibility of City trouble-shooter Ron Sandler, who will be paid £90,000 a month for taking on the role. |
| BBC business editor Robert Peston said Mr Sandler had lived and worked in the UK since the mid-1980s, paying UK tax on what he earns here. But he was brought up in Zimbabwe, has a German passport and holds assets overseas. | BBC business editor Robert Peston said Mr Sandler had lived and worked in the UK since the mid-1980s, paying UK tax on what he earns here. But he was brought up in Zimbabwe, has a German passport and holds assets overseas. |
| Tax purposes | Tax purposes |
| The government is currently targeting non-domiciled taxpayers - people who live in the UK but who say their real home or "domicile" is elsewhere. | The government is currently targeting non-domiciled taxpayers - people who live in the UK but who say their real home or "domicile" is elsewhere. |
| At present, these "non-doms" pay no tax in the UK on their overseas earnings. | At present, these "non-doms" pay no tax in the UK on their overseas earnings. |
| The Treasury is currently planning for all non-doms in the UK for seven years to have to pay a £30,000 fee to remain as a "non-dom", or pay taxes in the UK on all their income from across the world. | The Treasury is currently planning for all non-doms in the UK for seven years to have to pay a £30,000 fee to remain as a "non-dom", or pay taxes in the UK on all their income from across the world. |
| The BBC's Peston said the woman Mr Sandler has chosen to be his £75,000-a-month chief financial officer, Ann Godbehere, is currently resident for tax purposes in Switzerland and is also likely to adopt non-dom status. | The BBC's Peston said the woman Mr Sandler has chosen to be his £75,000-a-month chief financial officer, Ann Godbehere, is currently resident for tax purposes in Switzerland and is also likely to adopt non-dom status. |
| A Treasury spokesman said they would be "very relaxed" if Mr Sandler had the non dom tax status: "Contrary to what some might think we don't have a problem with non-doms." | A Treasury spokesman said they would be "very relaxed" if Mr Sandler had the non dom tax status: "Contrary to what some might think we don't have a problem with non-doms." |
| Ministers opted for public ownership of the bank after a bid from a consortium led by Sir Richard Branson's Virgin Group, alongside a proposal from the board of Northern Rock. | Ministers opted for public ownership of the bank after a bid from a consortium led by Sir Richard Branson's Virgin Group, alongside a proposal from the board of Northern Rock. |
| Mr Sandler, who has the task of finding a strategy for the bank, said it was too early to discuss potential job cuts among its 6,000 employees. | Mr Sandler, who has the task of finding a strategy for the bank, said it was too early to discuss potential job cuts among its 6,000 employees. |
| Subsidies | Subsidies |
| But he added that there was a good platform from which to stabilise the bank and repay billions of pounds of loans. | But he added that there was a good platform from which to stabilise the bank and repay billions of pounds of loans. |
| The Unite union, which represents 4,500 of Northern Rock's staff, called for the government to guarantee nationalisation would not lead to compulsory redundancies. | The Unite union, which represents 4,500 of Northern Rock's staff, called for the government to guarantee nationalisation would not lead to compulsory redundancies. |
| Graham Goddard, the union's deputy general secretary, said the bank's new management had given a commitment that they would be able to discuss Northern Rock's future, for the benefit of everybody. | Graham Goddard, the union's deputy general secretary, said the bank's new management had given a commitment that they would be able to discuss Northern Rock's future, for the benefit of everybody. |
| He said he was hopeful they could find an alternative to compulsory redundancies, such as retraining and natural wastage. | He said he was hopeful they could find an alternative to compulsory redundancies, such as retraining and natural wastage. |
| HAVE YOUR SAYDue to greed, political and financial incompetence, the taxpayer has been left with a huge billHoss, EdinburghSend us your comments | HAVE YOUR SAYDue to greed, political and financial incompetence, the taxpayer has been left with a huge billHoss, EdinburghSend us your comments |
| Taxpayers are currently subsidising the bank in loans and guarantees to other lenders to the tune of about £55bn. | Taxpayers are currently subsidising the bank in loans and guarantees to other lenders to the tune of about £55bn. |
| Under the new strategy this will rise to £110bn, an equivalent of £3,500 per taxpayer. | Under the new strategy this will rise to £110bn, an equivalent of £3,500 per taxpayer. |
| Matthew Sinclair, from the Taxpayers' Alliance, said this was a very big price for taxpayers. | Matthew Sinclair, from the Taxpayers' Alliance, said this was a very big price for taxpayers. |
| "Taxpayers have been saddled with debts the private sector did not have much appetite for," he said. | "Taxpayers have been saddled with debts the private sector did not have much appetite for," he said. |
| Trading in Northern Rock shares was suspended on Monday morning, ahead of the introduction of the emergency legislation. | Trading in Northern Rock shares was suspended on Monday morning, ahead of the introduction of the emergency legislation. |
| Groups representing Rock shareholders, who are likely to receive very little in the way of compensation, say there are "good grounds" for legal action over the government's move. | Groups representing Rock shareholders, who are likely to receive very little in the way of compensation, say there are "good grounds" for legal action over the government's move. |
| Northern Rock's problems were prompted last autumn by a slump in the US housing market and a freezing up of global credit markets that started a run on the bank. | Northern Rock's problems were prompted last autumn by a slump in the US housing market and a freezing up of global credit markets that started a run on the bank. |