"Government incompetence has been costly to Northern Rock" says Sue Doughty

5.18.00pm GMT Tue 19th Feb 2008

This will be the first nationalisation of a British company since the 1970s

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

Responding to the decision by the Government to nationalise Northern Rock, Sue Doughty, Liberal Democrat Spokesperson for Guildford 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 the very end.

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

"The housing market has entered a downturn and home repossessions are already rapidly increasing. In fact, a total of 371 families lost their homes in Guildford last year. This highlights a key issue and that is that irresponsible lending at more than the value of property needs to stop.

"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."

Related Link:

Lib Dems - a stable, well managed economy.