Today I called upon the Prime Minister to impose an immediate windfall tax on speculators profiteering from the Northern Rock crisis and to launch a public inquiry as it is revealed that speculators made huge gains in profiteering from the crisis and that Northern Rock had set up “Granite Companies” to put the protection of City financiers before the protection of its customers.
The whole Northern Rock saga stinks to high heaven. It is estimated city traders have made £1billion in profits from “bear raids” on Northern Rock. Added to this the renowned tax expert, Richard Murphy from Tax Research, has revealed that Northern Rock had established what it sarcastically called “Granite” Companies in which funds were placed to ensure that in the event of any financial turbulence the City would be protected ahead of Northern Rock’s own customers. Plus we have today’s exposure that the Rock’s board has paid itself £30 million over the last five years. This all adds up to the need for an immediate windfall tax on the speculators profiteering from this crisis and for a full and independent inquiry into the role of the Government, Bank of England and FSA in turning a blind eye to city excesses for so long.