I first wish to make it clear that I welcome the Bill. In fact, with the greatest respect to the hon. Member for Twickenham (Dr. Cable), I think that I was the first MP to call for nationalisation, although that is hardly surprising because I have been calling for the nationalisation of the financial sector for 30 years or more. However, I was astounded when my right hon. Friend the Chancellor said on Second Reading that the Granite operation was not included in the legislation.
From my reading of the Treasury Committee's brief reference to Granite and the advice received from accountants in the tax justice campaign, my understanding of the scheme—even its name suggests that it was a great wheeze—is that several of the directors at Northern Rock established an offshore vehicle to avoid tax. It was still on the balance sheet of Northern Rock and they securitised a large percentage of their assets in it and received about 50 per cent. of their funding from it. As a result and as far as I am concerned, Granite is a creature of Northern Rock and therefore is part of the asset base of the bank and its operations.
Banking (Special Provisions) Bill
Proceeding contribution from
John McDonnell
(Labour)
in the House of Commons on Tuesday, 19 February 2008.
It occurred during Debate on bills
and
Committee of the Whole House (HC) on Banking (Special Provisions) Bill.
Type
Proceeding contribution
Reference
472 c281 
Session
2007-08
Chamber / Committee
House of Commons chamber
Subjects
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Timestamp
2023-12-15 23:04:12 +0000
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