Question
To ask the Chancellor of the Exchequer pursuant to the Bradford and Bingley plc Transfer of Securities and Property etc (Amendment) Order 2009, dated 19 February 2009, whether his Department plans to compensate the shareholders of Bradford and Bingley plc on the same basis as proposed in the Bradford and Bingley Compensation Scheme Order 2008.
Answer
The purpose of the Bradford and Bingley plc Transfer of Securities and Property etc. (Amendment) Order 2009 is to provide clarity in relation to the circumstances in which principal and interest on the dated subordinated notes issued by Bradford and Bingley will become due and payable.It makes no change to the arrangements to compensate former shareholders of Bradford and Bingley as set out in the Bradford and Bingley Compensation Scheme Order 2008.For the hon. Member's information the Treasury has also laid before Parliament a draft order entitled the Bradford and Bingley plc Compensation Scheme (Amendment) Order 2009. The effect of the amendment made by article 2 of the draft order is to ensure that the independent valuer appointed in accordance with the Bradford and Bingley plc Compensation Scheme Order 2008 must assess any compensation payable for any interferences in a person's consequential rights taking into account the amendments made by the Bradford and Bingley plc.Transfer of Securities and Property etc. (Amendment) Order 2009. The draft Order was laid before Parliament on 25 February 2009, and is expected to be debated later this month.