Darling backs The Journal’s campaign
Oct 12 2007 by William Green, The Journal
NORTH MPs lined up to back the Northern Rock yesterday amid hopes it can survive as a North-East based company – as Chancellor Alistair Darling revealed he himself has a mortgage with the bank.
Mr Darling acknowledged the importance of the Northern Rock and its charitable foundation as MPs stressed the bank has a viable future.
Mr Darling promised he was ready to help and recognised The Journal’s campaign in support of the bank and its foundation after making a Commons statement. The Treasury had fully guaranteed retail deposits with Northern Rock up to September 19 after it was hit by turmoil in the money markets, where it raised much of its cash for mortgage lending. But the assurance was this week extended to accounts opened after that date.
The developments came amid reports US banking giant Citi is considering taking an equity stake in Northern Rock on top of offering a £10bn-plus credit line, which could help safeguard its future.
Tyne Bridge MP David Clelland, a long-standing bank customer, asked what the Government could do to ensure Northern Rock continued as an independent North-East based company and protect staff and the foundation.
The Chancellor, mentioning his own mortgage, said: “The most significant thing that the Government can do is to continue to provide the support we have offered to Northern Rock to give it time to consider its strategic options.”
Newcastle North MP Doug Henderson said Northern Rock employed 4,000 people at its headquarters in his constituency and savers welcomed action to protect them.
The Labour MP added staff had told him the bank was a viable business and called on Mr Darling to use his “good offices” to achieve that. The Chancellor said Mr Henderson had made a “very good point”, adding the bank was of great importance to the North-East.
“It enjoys a good reputation, it employs over 6,000 people and I very much hope that in the next few weeks and months that a solution can be found that will enable the bank to continue.”
Sunderland South MP Chris Mullin said Northern Rock was a respected institution and called on Mr Darling to stop it being taken over by a predator and “asset stripped”.
Sharon Hodgson, MP for Gateshead East and Washington West, said the company was a great employer and held with “fondness” in people’s hearts in the North-East.
The Labour MP, who used to work at the bank and is an account holder, said it was vital to give support to avoid a hostile takeover and backed the Northern Rock Foundation.
Speaking to Mr Darling, she added: “Can I just ask him if he can commend the campaign by The Journal which has done a lot to highlight the need for this company to stay a North-East based company.” Mr Darling said: “I do know The Newcastle Journal has been running a campaign and not surprisingly because the Northern Rock bank is of great importance not just to Newcastle but also the North-East.”
Fraser Kemp, Labour MP for Houghton and Washington East, said Government action had given the bank “sufficient breathing space” not to be bounced into an unsatisfactory sale.
