Northern Rock

Debate between Mark Hoban and Geoffrey Robinson

Monday 21st November 2011 Commons Chamber

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

Is the Financial Secretary not aware that this is an appalling deal, and at quite the wrong time for the British taxpayer? Is he not aware that the European Commission cannot sanction the imposition of that date? The worst time to sell a company is when it is loss-making and when—as in this case—it has prospects of profits to come. He should have waited. It is the timing that is being opposed, and which has nothing to do with the European Union, but everything to do with the collapse of this Government’s economic policy.

[Mr Hoban]

The hon. Gentleman is well known for his business experience, but what we need is to get the best deal for the taxpayer and Northern Rock. The advice that we received from our independent advisers indicated that this was the best time. As I mentioned in my statement, we got a price-to-book ratio of about 0.8, which compares with other banks, which are currently trading on a price-to-book multiple of 0.5. That sounds to me like a good deal for the taxpayer.

Oral Answers to Questions

Debate between Mark Hoban and Geoffrey Robinson

Tuesday 6th September 2011 Commons Chamber

[Mr Hoban]

In our first Budget we were able to reduce corporation tax and set out a clear path to reduce it over the lifetime of this Parliament. We were also able to reverse Labour’s damaging jobs tax.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

Will the Minister draw to the attention of the Chancellor the fact that economic credibility affects all Treasury Ministers in due course, and that in his case it is affecting him rather earlier than he might have thought? Can he not see that, with a lack of growth, he will not hit his deficit reduction target? Without hitting that target, he will not realise his plan, and without his plan—which is already in shreds—he will lack credibility, too.

[Mr Hoban]

I wonder whether the hon. Gentleman’s remarks about the loss of credibility for Treasury Ministers reflect his own experience.