The N word
- 16 Jan 08, 10:18 AM
Stand by to see if Gordon Brown uses PMQs to continue softening up public opinion for the return of the "N word" to the political fray.
For week after week, when the Lib Dems’ Vince Cable advocated nationalising , ministers seemed terrified of even uttering the word. Then they began to say that "no option was ruled out". Now they are attacking the Tories for resisting what they say may be the only answer to the stricken bank.
Be in no doubt that Alistair Darling and Gordon Brown are fully aware of the awesome political downsides of the "N word" - with its reminders to those of my generation and above of British Leyland, British Rail and the so-called "British disease".
They may, nevertheless, nationalise the bank if they feel they can present it as the best/cheapest option for the taxpayer. (My colleague Robert Peston explains on his blog why private sector solutions for the Rock may be pricier solutions).
There is also another issue here - when will the losses to the taxpayer be evident and quantifiable? I'm told that that some "solutions" involve writing off billions of taxpayers money upfront whereas others allow the exact scale of losses to be hidden for years to come. Naturally this will not be a factor in ministers’ minds.
PS: Yesterday the man at the eye of the storm delivered an interesting speech about how he sees the Treasury. Alistair Darling will come under ferocious fire when the final decision on the future of the Rock is taken. His words yesterday give a guide to how he would like his period at the Treasury to be seen.
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