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Northern Rock: Charitable Donations

Volume 474: debated on Tuesday 1 April 2008

To ask the Chancellor of the Exchequer what (a) charitable and (b) other donations had been committed by Northern Rock and remained unpaid at the entry into force of the Northern Rock plc Transfer Order 2008; and what plans the Board of Northern Rock has to honour such commitments. (195953)

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 annual report and accounts.

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.

As the Chancellor of Exchequer informed the House, the Northern Rock Foundation will be guaranteed a minimum income of £15 million per year in 2008, 2009 and 2010, and this will be paid directly by Northern Rock. The board of the company has also been asked to identify a viable long-term future for the foundation.