Dear Mr. Chancellor,
The Northern Rock employs 6,500 people, most of them in marginal constituencies.
You have just promised £25,000,000,000 of public money to keep them employed, as a loan that you only get back if the business ends up doing well.
That works out at almost FOUR MILLION POUND PER JOB SAVED.
If the business tanks, you will end up with the assets of a failing company – mostly some nice office blocks in marginals, where maybe you could create some public sector jobs?
I also live in a marginal constituency. Our (labour) MP got back with a majority of 19… not 19,000, just 19 (on the third recount.)
My company employs two people.
Would it be possible to arrange for a cheap loan on the same basis. Clearly we wouldn’t require the full £3.8million per head – we’d be happy with just £2.5 million each.
And we promise to pay ourselves no more than the Directors of the Northern Rock.
Obviously, if the business does well, we’ll repay you.
If the business tanks, then for only £5,000,000 of taxpayer’s pounds, you have have control of all the revenues of my book, and my laptop (the two core business assets).
Is no-one else shocked at what’s happened here? The SAVERS money was already protected – the NR had, for years, been paying a levy into the Financial Services Compensation Scheme to guarantee that.