Banking (Special Provisions) Bill

I am sorry; I cannot give way. I must also take issue with my right hon. Friend the Member for West Dunbartonshire (John McFall). I do not think that it would be sensible to insist on the continuation of the penalty arrangements imposed on the bank in September. I do not think it would be sensible for the target of repayment of outstanding obligations to the Treasury and the Bank of England to be sought to be achieved in one to three years, as was the apparent position of the Government only a fortnight ago. Those matters must be reconsidered. I agree that the business plan is the next step, which the House must consider, but it is extremely important that the work force, who have proved to be so steady and stable in what have been very difficult circumstances, are actively involved in its preparation. I look to my right hon. Friends on the Front Bench to give me clear assurances about that issue before the end of this debate. The House must understand that mortgages are now not long-term products. The life of a mortgage is less than five years. If a mortgage business does not grow, it dies. Saying that Northern Rock in its present form cannot take on new business will kill it off, and again I look for further reassurances from my right hon. Friends on the Front Bench that none of the proposals in the Bill is predicated on the assumption that Northern Rock will be unable to take on new business. As Northern Rock's fixed-term mortgages become due, borrowers are already being directed back to the markets rather than to the bank's own mortgage review provisions. That policy has been pursued for the past two months, but if it continues for any length of time, it will mean certain death for the bank. I look to my right hon. Friends on the Front Bench, and to Mr. Sandler, for very clear assurances that it will be discontinued, so that Northern Rock has the option to construct new business. Another important thing to understand is that there has been a significant change in the Liberal Democrats' thinking about nationalisation. They began by saying that nationalisation would be an almost momentary interlude, merely a phase in the transition to private ownership. Over the past few days, however, it has become clearly recognised in all parts of the House that the problems at Northern Rock will not be solved in a moment or two, and perhaps not even in a year or two. The sensible framework for the House's thinking is that we will have to deal with the situation at Northern Rock over a number of years. Moreover, in due course—I do not think that it would be reasonable for us to insist on their doing so this afternoon—the Government will have to consider how they discharge their obligations to Parliament in reporting on the management of a publicly owned bank that is likely to remain in public ownership for quite a significant period. Another welcome aspect of the Bill is that it not limited to one line that deals with the specific problems posed by Northern Rock. Instead, it provides means of dealing with other problems that may exist and with which the House will have to deal. Northern Rock is not an isolated piece of rock in an otherwise quiet and calm sea. We are talking about a very turbulent market, and other unexpected things could happen. The Government have been right to use the Bill to provide a context for dealing with other matters if the need arises. In particular, I welcome the additional provisions that deal with problems that might affect building societies. They are especially helpful, as they will calm the markets and reassure borrowers and depositors until the Government can put longer-term legislation in place. The Government have various other matters on their agenda at the moment. Affordable housing is one problem, and another is how higher levels of home ownership can be achieved among people whose incomes are neither great nor especially stable. Some of what Opposition Members have said about Northern Rock this afternoon leads us precisely to the debate about how the Government should deal with such matters, because the fact that there is a bank in public ownership means that they will be in the front line of providing housing finance. Some of my other doubts centre around whether the Government, at this stage in their life, can take on such problems—