Government incompetence has been costly to Northern Rock

2.55.05pm GMT Mon 18th Feb 2008

Funding problems at Northern Rock triggered the first run on a British bank in more than a century

Delays caused by Government indecision have damaged Northern Rock and the British economy, Jo Swinson has said.

Responding to the decision by the Government to nationalise Northern Rock, Jo said:

"This decision is welcome but was also inevitable and should have been taken last year. Instead, Gordon Brown and Alistair Darling have been paralysed by their own indecision. They put off the only sensible course of action right until they couldn't avoid it any longer.

"Had Labour followed the advice of Liberal Democrat Shadow Chancellor Vince Cable last year, the uncertainty that has been so damaging to Northern Rock and to the British economy would have been avoided.

"The Conservative proposal that Northern Rock should be put into administration and run down would be a disaster. It is the one way to guarantee that every single job at the bank would be lost.

"Temporary nationalisation will not be easy for Northern Rock, but it at least offers hope that the bank can have a long-term future and eventually be sold when conditions are better."

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