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Northern Rock: Guernsey

Volume 475: debated on Thursday 8 May 2008

To ask the Chancellor of the Exchequer pursuant to the answer of 31 March 2008, Official Report, column 660W, on Northern Rock: consultants, whether the management of Northern Rock has now indicated to the Government its intention with regard to Northern Rock Guernsey Ltd; and whether the Government have indicated to the management of Northern Rock their preferred course of action with regard to this subsidiary. (199986)

[holding answer 21 April 2008]: During this period of temporary public ownership, Northern Rock is managed by its board at arm's length from Government on commercial principles.

Northern Rock has published a business plan and a shareholder relationship framework agreement based on which HM Treasury will operate its shareholder relationship with the company. The Chancellor of the Exchequer has approved the two documents and has placed copies of the documents in the Library of both Houses.