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MPs debate Northern Rock
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Contact: Rachel Le Brocq Date: 19 Dec 2007 |
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In an opposition day debate (12 December) on Northern Rock called by Vince Cable MP (Lib Dem, Twickenham), David Drew MP (Lab/Co-op, Stroud) asked if the troubled bank could be remutualised: “I, for one, congratulate the hon. Gentleman on calling the debate. Did he consider another option-the possibility of remutualising Northern Rock? Some of us feel strongly that one of the great problems of demutualisation is that it was predictable that some companies, because of the nature of the marketplace in which they operate, would overstretch themselves. Is it not time we looked at the strength of mutuals again?”
Vince Cable sympathised with the question stating “I used to be involved in an organisation called Save Our Building Societies, which campaigned against the original demutualisation of Northern Rock for precisely that reason. After a period of temporary public ownership, that might be one of the options that appear viable, but rushing into a sale now would preclude it. The hon. Gentleman is absolutely right.”
The full debate from 12 December can be viewed here
