Scottish and Northern Ireland Banknote Regulations 2009

That is a colourful perspective but I am not sure that I can follow my noble friend down that path. I reassure him that the rights conferred on the corporate entity cannot be transferred to anyone else—they cannot be sold to another bank by contract. Whether the existing bank will continue will depend on the circumstances of the restructuring and the security identified in terms of that restructuring. I am not in a position to give assurances on that now because none of us knows the structure that will emerge. I can only give my noble friend a negative assurance: the rights cannot be transferred to another corporate entity. Whether the corporate entity continues and enjoys the confidence to carry on its functions will depend on the Bank of England’s judgment on the arrangements of the corporate entity, but my noble friend will recognise how important that is to the bank. Therefore, it is inconceivable that this will not be part of the priorities of the restructuring position. I do not think that I can comment any more fully on that. I appreciated the comments made by the noble Lord, Lord Kilclooney, about the timeliness of the measure. It is important that we establish confidence all round in the circumstances he identified where there are some anxieties, which I would not want to exaggerate. However, he is suggesting that the cost is somewhat high, but we do not think that it is. The confidence of the public in the banknotes that are issued is crucial. The noble Lord has identified a dimension of the problem of others accepting the banknotes at face value because of the way in which they are inscribed and so on. I am not in a position to comment on that, but that point will be taken on board. The general issue is that confidence in the notes is critical, which is why we regard this whole process as being one in which necessary costs may be incurred, but they are part of the crucial role of the Bank of England in relation to guaranteeing the essential security behind the banknotes, which, as the noble Lord emphasised, is so important. The noble Lord, the Earl of Montrose, also asked me about this question.