Darling in talks on Rock workers

Jan 30 2008 by Graeme Whitfield, The Journal

CHANCELLOR Alistair Darling is today set to meet representations of staff at Northern Rock as the bank’s future is decided.

Mr Darling will hold talks at the Treasury with a delegation that includes officials from the Unite union as well as Newcastle North MP Doug Henderson and North-East Minister Nick Brown.

The meeting comes after the Chancellor last week unveiled plans designed to assist any private buyer in taking over the Northern Rock, which suffered a run in the wake of global financial turmoil last year.

Bids are being invited for the bank in which suitors including Virgin Money and Olivant would not need to find the money to repay the taxpayer an estimated £24bn loan, with the cash instead raised through bonds – guaranteed by the Government – which would be sold to investors.

Mr Darling also said temporary public ownership, or nationalisation, remained an option and legislation was being prepared to deal with the possibility as he announced a February 4 deadline for bids.

Speaking to The Journal, Mr Henderson said: “They are going to make a submission of what is crucial for them on jobs over the whole country, but particularly in the North-East where the vast majority are based.

“They want to submit their comments on the various bids possible and to find out where the Chancellor’s thinking is at this stage.”

The Labour MP added: “I think the Chancellor did the right thing last week to make sure there is financial backing for whatever bid is available for Northern Rock.

“The work people are of the view, and I agree with it, that premature nationalisation is not the way forward and could risk jobs, and the best idea is to keep the business as a going concern with refunding and restructuring.”

Mr Darling is also today expected to unveil proposals to overhaul the system of financial regulation introduced by Gordon Brown in the wake of last year’s run on Northern Rock.