§ Mr. Salmondasked the Chancellor of the Exchequer when the Bank of England was informed of the sale of the Clydesdale Bank to the National Australia Bank; when the Treasury was informed of the matter; whether either sought or received any guarantees as to employment, investment and autonomy of operation; and when the Bank of England gave its approval to the sale.
§ Mr. LilleyThe Bank of England was informed at an early stage of the negotiations. The bank considered the proposed acquisition of Clydesdale Bank and Northern by National Australia Bank and, against the criteria in the Banking Act 1979, indicated to Midland Bank and National Australia Bank before the announcement on 7 July that it had no objection in principle. The Treasury was also informed before the announcement.
Discussions with the National Australia Bank did not include the question of guarantees of the kind to which the hon. Member refers, as such guarantees were neither necessary nor appropriate to meet the Banking Act criteria.