Nationalisation of Northern Rock

LEFT ECONOMICS ADVISORY PANEL
CO-SPONSORED BY
New Left Unions, Socialist Campaign Group & Labour Representation Committee


PRESS NOTICE:

FOR IMMEDIATE RELEASE:

Rock in, but where's the Granite? - Labour MP exposes gaping hole in Rock nationalisation . . .
. . . process allows key assets to escape nationalisation leaving taxpayer to pick up loss-making side

In last night's debate on the nationalisation of Northern Rock, Labour MP John McDonnell (Chair of the Left Economics Advisory Panel [LEAP]) highlighted the fact that Granite - an offshore trust - holds the best assets of the failed bank, and the Government will only be nationalising the most risky side

John McDonnell MP, Chair of LEAP, said:

"I have written to the Chancellor asking for an immediate statement on why the Treasury is allowing the most profitable elements of the operation to escape the nationalisation net. As they stand, the proposals will increase the burden on the taxpayer and put at risk the jobs of Northern Rock workers.

"People will be asking, 'how can the Government have got us into this state of affairs?' The sad truth is that by failing to regulate the financial sector adequately, they have been hoist by their own petard. It is scandalous that the participants in this tax dodge should be allowed to walk away with millions, when workers may lose their jobs and the taxpayer risk billions."

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