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| Version 5 | Version 6 |
|---|---|
| Brown accused over Northern Rock | Brown accused over Northern Rock |
| (40 minutes later) | |
| Gordon Brown has been accused of failing to answer questions on Northern Rock, including why its most profitable part will not be nationalised. | Gordon Brown has been accused of failing to answer questions on Northern Rock, including why its most profitable part will not be nationalised. |
| Tory leader David Cameron said Mr Brown's lack of openness would "make Fidel Castro proud". | Tory leader David Cameron said Mr Brown's lack of openness would "make Fidel Castro proud". |
| And the Lib Dems threatened to derail the bill nationalising Northern Rock unless the government explained why key assets were staying in private hands. | And the Lib Dems threatened to derail the bill nationalising Northern Rock unless the government explained why key assets were staying in private hands. |
| Mr Brown insisted the government was acting in taxpayers' interests. | Mr Brown insisted the government was acting in taxpayers' interests. |
| The government is rushing through emergency legislation to nationalise Northern Rock after efforts to find a private buyer failed. | The government is rushing through emergency legislation to nationalise Northern Rock after efforts to find a private buyer failed. |
| But opposition MPs are concerned it has not done enough to protect taxpayers if the bank runs into further trouble. | But opposition MPs are concerned it has not done enough to protect taxpayers if the bank runs into further trouble. |
| 'Rubbish' assets | 'Rubbish' assets |
| There is particular concern about the role of Granite - a Jersey-based trust set up by Northern Rock in 1999 to package up and sell on its best mortgages to investors - which owns about half of the bank's assets. | There is particular concern about the role of Granite - a Jersey-based trust set up by Northern Rock in 1999 to package up and sell on its best mortgages to investors - which owns about half of the bank's assets. |
| Ministers have so far completely failed to answer how the continued existence of Granite will be anything other than an asset stripping operation Vince Cable Lib Dem treasury spokesman | Ministers have so far completely failed to answer how the continued existence of Granite will be anything other than an asset stripping operation Vince Cable Lib Dem treasury spokesman |
| Granite contains about £45bn of Northern Rock's most profitable mortgages but it will not be nationalised - leading opposition MPs to claim taxpayers will be left with the "rubbish" in the bank's mortgage book. | Granite contains about £45bn of Northern Rock's most profitable mortgages but it will not be nationalised - leading opposition MPs to claim taxpayers will be left with the "rubbish" in the bank's mortgage book. |
| Mr Cameron and Lib Dem leader Nick Clegg both raised the issue at prime minister's questions in the Commons. | Mr Cameron and Lib Dem leader Nick Clegg both raised the issue at prime minister's questions in the Commons. |
| Mr Clegg said the way the nationalisation had been handled was "jeopardising the interests of the British taxpayers". Mr Brown insisted "stability" was the government's "watchword" - and Granite would "not affect the sale of Northern Rock to a private buyer". | Mr Clegg said the way the nationalisation had been handled was "jeopardising the interests of the British taxpayers". Mr Brown insisted "stability" was the government's "watchword" - and Granite would "not affect the sale of Northern Rock to a private buyer". |
| Responding to questions from Mr Cameron, Mr Brown said it was necessary to exempt Northern Rock from freedom of information laws because of commercial confidentiality. | Responding to questions from Mr Cameron, Mr Brown said it was necessary to exempt Northern Rock from freedom of information laws because of commercial confidentiality. |
| 'Student politics' | 'Student politics' |
| He claimed the Conservatives had been through six different policies on Northern Rock, with their latest set of proposals amounting to "fire sale" of its assets. | He claimed the Conservatives had been through six different policies on Northern Rock, with their latest set of proposals amounting to "fire sale" of its assets. |
| Mr Cameron described the prime minister's answers as "feeble" as several other publicly-owned companies were subject to FoI laws. | Mr Cameron described the prime minister's answers as "feeble" as several other publicly-owned companies were subject to FoI laws. |
| He said Mr Brown had failed to say what the total liability to the taxpayer would be over Northern Rock, how long the public would own it and why half of its mortgages would be left in private hands. | He said Mr Brown had failed to say what the total liability to the taxpayer would be over Northern Rock, how long the public would own it and why half of its mortgages would be left in private hands. |
| Mr Brown accused Mr Cameron of reducing the Northern Rock issue to the level of "student politics" and said the government had acted in the best interests of taxpayers. | Mr Brown accused Mr Cameron of reducing the Northern Rock issue to the level of "student politics" and said the government had acted in the best interests of taxpayers. |
| 'Asset-stripping' claim | 'Asset-stripping' claim |
| Clashes are also expected later in the House of Lords as peers debate the nationalisation of Northern Rock. | Clashes are also expected later in the House of Lords as peers debate the nationalisation of Northern Rock. |
| The Lib Dems are threatening to vote against it, setting up the possibility of the bill 'ping ponging' between the Lords and the Commons as the government battles to get it on the statute book by its deadline of Thursday. | The Lib Dems are threatening to vote against it, setting up the possibility of the bill 'ping ponging' between the Lords and the Commons as the government battles to get it on the statute book by its deadline of Thursday. |
| Lib Dem treasury spokesman Vince Cable earlier accused chief secretary to the Treasury Yvette Cooper of not knowing what was happening to the mortgages held by the Granite offshore trust, when she faced MPs on Tuesday night. | Lib Dem treasury spokesman Vince Cable earlier accused chief secretary to the Treasury Yvette Cooper of not knowing what was happening to the mortgages held by the Granite offshore trust, when she faced MPs on Tuesday night. |
| "Ministers have so far completely failed to answer how the continued existence of Granite will be anything other than an asset stripping operation, designed to protect this segment of the bank's activities while the taxpayer is left with unsecured loans and high risk mortgages. | "Ministers have so far completely failed to answer how the continued existence of Granite will be anything other than an asset stripping operation, designed to protect this segment of the bank's activities while the taxpayer is left with unsecured loans and high risk mortgages. |
| "The shambolic performance of ministers in Parliament last night (Tuesday) smacks of a Treasury that is out of control. | "The shambolic performance of ministers in Parliament last night (Tuesday) smacks of a Treasury that is out of control. |
| "The government must explain how it will ensure that taxpayers will not end up picking up the scraps of Northern Rock from Granite's table." | "The government must explain how it will ensure that taxpayers will not end up picking up the scraps of Northern Rock from Granite's table." |
| Mr Cable has written to Chancellor Alistair Darling to ask why Granite will not be nationalised. | Mr Cable has written to Chancellor Alistair Darling to ask why Granite will not be nationalised. |
| Labour MP John McDonnell has also written to the chancellor to demand an explanation of Granite's role, which he said increased the burden on the taxpayer and put Northern Rock jobs at risk. | Labour MP John McDonnell has also written to the chancellor to demand an explanation of Granite's role, which he said increased the burden on the taxpayer and put Northern Rock jobs at risk. |
| 'Fully secure' | 'Fully secure' |
| In Tuesday night's debate, former Conservative chancellor Kenneth Clarke said Northern Rock's best assets were in Granite, adding: "It looks as though there is a contract enabling more assets to be drawn in and it is the rubbish in the assets that we are now nationalising." | In Tuesday night's debate, former Conservative chancellor Kenneth Clarke said Northern Rock's best assets were in Granite, adding: "It looks as though there is a contract enabling more assets to be drawn in and it is the rubbish in the assets that we are now nationalising." |
| But in a statement, the Treasury said: "The government has made clear throughout this process that all our loans and guarantees are secured against Northern Rock's assets - not those in Granite - and the FSA has confirmed that Northern Rock's mortgage book is of good quality and fully secure against any government exposure. | |
| "Northern Rock does not sell all its high quality mortgages to Granite; it retains a substantial volume of high quality mortgages on its own balance sheet. | "Northern Rock does not sell all its high quality mortgages to Granite; it retains a substantial volume of high quality mortgages on its own balance sheet. |
| "As such it is simply wrong to say that all the high quality mortgages are in Granite." | "As such it is simply wrong to say that all the high quality mortgages are in Granite." |
| Emergency legislation to nationalise the stricken bank was rushed through the Commons in a single day on Tuesday, with the government hoping to get in to the statute books by the end of the week. | Emergency legislation to nationalise the stricken bank was rushed through the Commons in a single day on Tuesday, with the government hoping to get in to the statute books by the end of the week. |