Labour

Sale of Northern Rock at a loss represents scandalously poor value for money - Leslie

Chris Leslie MP, Labour’s Shadow Treasury Minister, in response to UKFI’s report on Northern Rock, said:  
 
“The sale of Northern Rock plc at a huge loss represents scandalously poor value for taxpayers’ money.  
 
“While UKFI as a Government body may view this process through rose-tinted spectacles, the virtual giveaway of this asset to Virgin Money needs a full and independent appraisal. I am pleased that, following my letter, the National Audit Office agreed to undertake a value-for-money inquiry later in the year and I await their conclusions with interest.  
 
“Ministers are hiding behind European rules as the reason for rushing this sale at a time when the British economy is flatlining, bank shares are in decline and the eurozone crisis continues. But my discussions with the European Commission suggest that they would have waived the target for divestment from the end of 2013, if only the Treasury had requested this, precisely because of the weakness and uncertainty in the economy.

“Ministers should have gripped this issue, prevented this firesale, and waited for the economy to recover before selling off these assets at a rock bottom price.”