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Financial Institutions: Consultants

Volume 495: debated on Tuesday 7 July 2009

To ask the Chancellor of the Exchequer how much money was paid to external advisers by (a) Northern Rock, (b) RBS, (c) other financial sector firms in which the Government own a shareholding and (d) other financial sector firms in which the Government have been involved in recent restructuring for goods and services delivered to (i) his Department and (ii) the Bank of England during (A) 2008 and (B) 2009 to date. (283861)

The Treasury's external adviser fees will be shared between the banks participating in the Government's financial intervention schemes. Professional advisory fees incurred by the Treasury for the Northern Rock are shown in the Treasury's resource accounts 2007-08, which is available at

Figures for the Treasury's spending in 2008-09 will be available in the department's resource accounts 2008-09 after the conclusion of the Comptroller and Auditor General's audit. Reporting the cost which the Bank of England incurs is a matter for the Bank.

UK Financial Investments (UKFI) has been set up to manage the Government's investments in financial institutions as an active and engaged shareholder, operating on a commercial basis and at arm's length from Government. The framework document between HM Treasury and UKFI sets a requirement that UKFI will not intervene in the day-to-day management decisions of investee companies, with the companies retaining their own independent boards, which will manage the banks and determine their strategy.

It is a matter for the banks' management to release specific business information and updates or provide any required disclosures in their audited annual report and accounts.