Government must insist on safeguards for Newcastle Northern Rock jobs - Stone

3.44.00pm BST (GMT +0100) Thu 2nd Jul 2009

Lib Dem Parliamentary Spokesman for Newcastle East Greg Stone has called on the Government to resist the temptation of making "a quick buck" by selling Northern Rock to a private sector buyer without requiring safeguards for NR jobs in the North East.

Speculation is mounting that the Government is considering a deal to return the bank to private ownership, following rumours that Tesco may be interested. This would be seen as a success for a Government much battered by recent economic problems. However, such a move could have an impact on employment at the company's sites at Gosforth and at Sunderland if a purchaser wished to merge Northern Rock with existing operations, and doubts have been raised about the wisdom of a quick sale.

Lib Dem Parliamentary Spokesman for Newcastle East Greg Stone said "Although the sites are not in my constituency I am aware that hundreds of constituents work at the Gosforth HQ. Whilst the aspiration is for Northern Rock to return to private ownership in due course, I am anxious that an unseemly rush to make a quick buck from the sale of Northern Rock may be counter productive. Gordon Brown needs to resist the temptation to make short term political and financial gain from this, unless safeguards are put in place which will prevent a new buyer from transferring operations out of the region, protecting the interests of workers."

He was speaking as senior Lib Dem MP Vince Cable warned the Local Government Association conference that "It's very clear the Government wants the banks off its hands as quickly as possible. In the current context, this would be absolutely disastrous."