§ Mr. DobsonTo ask the Chancellor of the Duchy of Lancaster if he will make a statement on the future of Girobank's corporate lending and leasing business in the event of its being sold to a building society.
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§ Mr. ForthUnder the Building Societies Act 1986, as amended, building societies are not permitted to undertake leasing business or make unsecured loans to corporate bodies. Arrangements would therefore need to be made for Girobank's leasing and corporate lending business to be removed from its balance sheet before it could be purchased by a buidling society. Such arrangements would be a matter for negotiation between the Post Office and the building society concerned in the first instance. The arrangements would need to satisfy the regulatory authorities.
§ Mr. DobsonTo ask the Chancellor of the Duchy of Lancaster what weight he gave to the net asset value of Girobank and to the current year's retained earnings in considering the Alliance and Leicester's £130 million bid for Girobank.
§ Mr. ForthAs the Chancellor of the Duchy of Lancaster announced on 20 April, at column260, we are satisfied that the Post Office Board's decision to accept the conditional offer made by Alliance and Leicester Building Society to purchase Girobank takes full account of the factors, of which price was one, which we announced would be taken into account in evaluating bids.