Banking (Special Provisions) Bill

Let me say what I have to say about competition, and we will then see what the hon. Gentleman has to say. I think that he raised the matter yesterday. I recognise that banks and building societies want to be assured about the impact on competition of taking Northern Rock into public ownership. We intend to hold discussions with the British Bankers Association, the Building Societies Association and the Council of Mortgage Lenders before the final business plan is submitted to the European Commission for state aid approval. Just as protecting the taxpayer has been one of the key principles of our actions and decisions over the past few months, one of the key features must be to ensure that we have the proper approach to Northern Rock in future. Although we will not be involved in the day-to-day management of Northern Rock, we will need to approve its business plan, as I said yesterday. We want to ensure that it is prudent and sensible and that it protects the interests of the taxpayer. We also want to ensure that it avoids distortions. If the business plan were built on taking advantage of the temporary Government support, it would not be consistent with our general aim of running the bank so as to reduce and remove that level of support. I hope that that provides the House with some reassurance that we do not want the bank to compete unfairly or distort competition. As I say, we will have discussions with some of the banking and building society associations before we submit the proposals for state aid approval, which we have to do by the middle of the month.