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Northern Rock: Consultants

Volume 474: debated on Tuesday 1 April 2008

To ask the Chancellor of the Exchequer how much his Department has paid to external advisers for advice on Northern Rock in 2007-08; and how much has been paid to each such adviser. (175532)

To ask the Chancellor of the Exchequer how much has been paid by his Department for legal advice on Northern Rock. (188855)

To ask the Chancellor of the Exchequer what fees have been paid by his Department for advice on Northern Rock to (a) Goldman Sachs and (b) Slaughter and May. (175652)

[holding answer 7 January 2008]: As the Chancellor informed the chairs of the Treasury Committee and Public Accounts Committee on 11 October 2007, Northern Rock has indemnified the Treasury in respect of certain costs and expenses, including adviser costs. Slaughter and May have provided legal advice outside the scope of the indemnity. Fees of £139,000 have so far been paid for this advice.

To ask the Chancellor of the Exchequer if he will publish Goldman Sachs' assessment of his Department's plan to guarantee bonds for Northern Rock; and if he will make a statement. (178709)

[holding answer 30 January 2008]: As the Chancellor of the Exchequer informed Parliament on 19 February 2008, Official Report, column 178, the Government will consider when and how the right information in relation to the Northern Rock situation should be put in the public domain.

To ask the Chancellor of the Exchequer what timescale has been identified for the repayment of loans advanced to Northern Rock; and if he will make a statement. (180033)

As set out in a written statement by the Chancellor of the Exchequer to Parliament on 18 March, one of the strategic priorities for Northern Rock is progressive repayment of the Bank of England loan and release of the Government guarantees over the next three to four years.

To ask Mr Chancellor of the Exchequer whether Richard Branson's consortium for Northern Rock includes the Far Eastern Investment Corporation. (185712)

I refer the hon. Gentleman to the answer I gave on 5 February 2008, Official Report, column 1048.

To ask the Chancellor of the Exchequer whether the Government plan to underwrite the repayment of Northern Rock's entire subordinated debt. (187829)

[holding answer 21 February 2008]: The Government have no plans to underwrite Northern Rock's subordinated debt. Holders of tier 1 and tier 2 capital instruments therefore remain at risk of loss ahead of the Bank of England and HM Treasury as providers of secured financial support to the company.

To ask the Chancellor of the Exchequer what estimate he has made of the cost of the advice provided to his Department by Goldman Sachs on Northern Rock; and if he will make a statement. (188250)

To ask the Chancellor of the Exchequer how much has been paid by his Department to Goldman Sachs for its advice on Northern Rock. (188856)

[holding answer 25 February 2008]: As the Chancellor informed the chairs of the Treasury Committee and Public Accounts Committee on 11 October 2007, Northern Rock has indemnified the Treasury in respect of certain costs and expenses, including advisor costs.

To ask the Chancellor of the Exchequer whether the Government plan to dispose of Northern Rock's Guernsey-based subsidiary, Northern Rock Guernsey Ltd., following nationalisation. (189887)

To ask the Chancellor of the Exchequer what corporate social responsibility standards Northern Rock will adopt while in temporary public ownership. (190549)

To ask the Chancellor of the Exchequer (1) what consideration he has given to the future of Northern Rock's Denmark subsidiary, Northern Rock Bank Danmark filial; and if he will make a statement; (190418)

(2) what his policy is on Northern Rock's approach to foreign exchange risk resulting from its deposits denominated in Danish Kroner;

(3) what discussions he has had with management at Northern Rock bank on the operation of the bank's Guernsey subsidiary.

During this period of temporary public ownership, Northern Rock is managed by its board at arm's length from Government on commercial principles.

The company is developing a full business plan, and will submit the final business plan to HM Treasury for approval by the end of March.

To ask the Chancellor of the Exchequer whether Northern Rock's Denmark subsidiary, Northern Rock Bank Danmark filial is subject to orders made under the Banking (Special Provisions) Act 2008. (190417)

Northern Rock's business in Denmark operated as a branch. This branch was a legal part of Northern Rock plc and was therefore subject to the Transfer Order made under the Banking (Special Provisions) Act 2008 along with the rest of the company. This means that the branch was also taken into a period of temporary public ownership as part of Northern Rock plc with effect from 22 February 2008.

To ask the Chancellor of the Exchequer how many depositors there are at Northern Rock Bank Danmark filial; and what the value of its assets is. (190419)

During this period of temporary public ownership, Northern Rock is managed by its board at arm's length from Government on commercial principles. It is a matter for the company's management to release specific business updates or provide any required disclosures in their audited annual report and accounts.

To ask the Chancellor of the Exchequer what the (a) dates of and (b) attendance at meetings between his Department and Goldman Sachs on the temporary public ownership of Northern Rock has been. (192983)

There were frequent meetings with our advisers throughout the period leading up to the decision to take Northern Rock into a period of temporary public ownership.

To ask the Chancellor of the Exchequer how much he estimates his Department will pay to (a) lawyers and (b) bankers for advice concerning Northern Rock. (194241)

As the Chancellor informed the chairs of the Treasury Committee and Public Accounts Committee on 11 October 2007, Northern Rock has indemnified the Treasury in respect of certain costs and expenses, including advisor costs. Slaughter and May has provided legal advice outside the scope of the indemnity. Fees of £139,000 have so far been paid for this advice.