§ Miss Hoey
To ask the Chancellor of the Duchy of Lancaster what steps he is taking to review the decision to sell Girobank to the Alliance and Leicester building society in view of the refusal of the Building Societies Commission to permit the Alliance and Leicester to keep Girobank's leasing and commercial lending business.
§ Mr. Newton
The Government were aware that Girobank's leasing and commercial lending business would be ultra vires for a building society and took this into account in endorsing the Post Office board's decision to grant the Alliance and Leicester a period of exclusive negotiations. Appropriate arrangements in respect of these activities are among the matters covered in those negotiations, the details of which are confidential.