Yesterday (19 February), during the debate on the nationalisation of Northern Rock, Jonathan Djanogly, the Member of Parliament for the Huntingdon constituency spoke out against John McFall MP, the Labour chairman of the Treasury Select Committee.
Mr. Djanogly said:
"Mr. McFall claimed that nationalisation of Northern Rock would be in the best interest of the taxpayer - but I queried on what basis he claims this to be the case?
For instance, what due diligence on the assets or liabilities of this bank has been conducted by Mr. McFall or by the Treasury Select Committee, or indeed by all the other MPs, who were yesterday asked to buy this Bank on behalf of the taxpayer?
It was acceptable for private purchasing companies to be given months to review the affairs of the Bank - so why were MPs, acting on behalf of the taxpayer, not even given two days?
In effect, we are being asked to put our faith in a dithering and failed Executive and Chancellor. I refuse to do so and fully support my Party's opposition to this ridiculous nationalisation."
Mr. Djanogly: I thank the right hon. Gentleman for giving way. He said that he believes that nationalisation is in the best interests of the taxpayer. How does he know what is in the best interests of the taxpayer? What due diligence information has he received on the assets and liabilities of the bank? What information have we Members received on the bank, on which we must make this decision today after one day's notice from the Government?
John McFall: If the hon. Gentleman had read the newspapers yesterday, he would have seen that although the top headlines were critical of nationalisation, almost every writer on the inside pages said that nationalisation is the best alternative to protect taxpayers' interests. It is folly for the hon. Gentleman to consider otherwise, and to think that we should accept a bid from Virgin or others on the basis that the share price will double and they will then start paying money back in 10 or 20 years. Is that a good deal? Of course it is not. We only need two clear eyes to see that.
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AND PREVIOUSLY IN THE SAME DEBATE
Mr. Djanogly: Would my hon. Friend agree that the fees incurred so far would be dwarfed by the litigation fees that may arise if the shareholders are not sorted out quickly?
Mr. Osborne: As my hon. Friend is a very successful solicitor, I am sure that he did not need to declare an interest. He well knows the substantial fees we all have to pay for good legal advice. I now give way to my hon. Friend the Member for Stone (Mr. Cash), who also has some expertise in this area."