NORTHERN ROCK
2
Mr. Darling stressed that Northern Rock's new management would operate
at arm's length from the Government, "with commercial autonomy for their
decisions". But the shadow chancellor, George Osborne, said Mr. Darling
and Gordon Brown had "dithered their way to disaster". The Conservative
leader, David Cameron, said it was time for the Chancellor to be removed
from his job. From Westminster, here's our political correspondent, Norman
Smith:
SMITH: While at one level this is a tussle over nationalisation - it
has also become a much broader struggle over which party can now claim to
be the party of the economy. For the Tories, the return of the N word is
the moment to paint Gordon Brown as a throw back to what they gleefully
called today "the dark days of the 1970s." For Ministers "temporary public
ownership" - as they carefully describe it - is evidence, of economic
competence and a willingness to take the necessary hard decisions. It
would have been easy said the Prime Minister to take the soft option and
simply hand Northern Rock over to the private sector immediately. Instead,
the Government had taken time to get the best deal for the taxpayer. And
at his monthly news conference, Mr Brown went out of his way to praise his
Chancellor for safeguarding the stability of the economy. The Tory leader,
meanwhile, said Mr Darling should be sacked:
CAMERON ACT: It frankly is no good the Prime Minister saying to the
Chancellor "you must keep your job". I think what will have to happen is
the Prime Minister will have to reconstruct his government, he will have
to move his Chancellor, and he will have to do it - if he has any sense -
within days or possibly weeks, but certainly not months, because I don't
think this Chancellor has any credibility left
SMITH: In the Commons however, there was strong support for the
Chancellor from Labour MPs - particularly from those with constituencies
in the north east - while Mr Darling voiced his anger at what he called
the "petty politics" of the Tories:
DARLING ACT: It is quite clear that the Conservative Party have got
absolutely no idea how to deal with this problem. All they can do is to
come up with proposition after proposition, which shows us cynical
opportunism rather than dealing with a serious problem they've absolutely
no answers whatsoever.
SFX: CHEERING AND JEERING
SMITH: There was though support for Mr Darling's stance from the Lib
Dems, who's Treasury spokesman Vince Cable wryly noted that he had always
backed nationalisation:
CABLE ACT: It was right to decide that temporary nationalisation is a
better option than a bad private sale.
SMITH: Most at Westminster now expect that Northern Rock will probably
have to remain in public ownership for years - which means this row is
almost certain to provide a crucial part of the backdrop to the next
election.