bill to nationalise the Northern Rock goes to the House of Lords today after it cleared the Commons following a marathon nine-hour debate. It can expect stiff opposition from opponents led by the former Conservative Chancellor Lord Lawson. He (Advertisement) told peers on Monday: "This has been the biggest saga of incompetence in any bank failure in our history." Despite Conservative opposition, the Government won a series of votes in the Commons with comfortable majorities. After the main set-piece debate on the legislation, the Banking (Special Provisions) Bill was given a second reading by 367 votes to 164, a massive Government majority of 203. In the committee stage that followed, the Conservatives failed in a bid to cut the time limit when many of the Bill's powers can be exercised from a year to a month. Then, shortly after midnight, the legislation completed its passage through the Commons when it was given a third reading by 293 votes to 167, a Government majority of 126. During ill-tempered exchanges in the Commons between the Chancellor, Alistair Darling, and Conservative MPs, the Shadow Chancellor George Osborne claimed shares in Northern Rock were now "virtually worthless".
The shares were valued at £12.50 each a year ago but were worth just 90p before trading was suspended on Monday prior to nationalisation by the Government. Mr Darling told MPs the amount of compensation paid to shareholders would be determined by an independent valuer to be appointed by the government.
Mr Darling was also ridiculed by the Lib Dems' Vincent Cable after it emerged that Northern Rock's new executive chairman, Ron Sandall, is a so-called "non-dom" who was brought up in Zimbabwe and has a German passport. "All the Government's favourite businessmen, including Sir Richard Branson and now Ron Sandler, appear to have so little commitment to the country let alone the Government that they are prepared to pay their taxes somewhere else," said Mr Cable. "Sir Ron Sandler is now presumably becoming the second best paid person in Newcastle after Michael Owen, but at least Michael Owen pays his taxes here." Click here for more breaking stories from Sky News