Dundee SNP

The SNP has branded the Nationwide’s decision to prevent Dunfermline customers accessing new lower rate mortgages offered by the Nationwide a “disgrace”.

Where the Nationwide is to offer it’s customers rates of 2.5% at the end of their current mortgage term, Dunfermline customers will be restricted to a rate of 5.49% – at a time when the base-rate is currently 0.5%.

Central Fife MSP Tricia Marwick, whose constituency includes many Dunfermline workers and mortgage holders said:

“This is an outrageous move by the Nationwide.

“Mortgage holders with the Dunfermline will be very angry. When mortgage deals come to an end they should have access to the best deal in what is now one society.

“Their building society has been sold off behind closed doors and now they are expected to pay a premium for the privilege. This raises more questions over the terms on which the Treasury sold Dunfermline.

“Retaining the Dunfermline brand is important, but that should not mean Dunfermline savers and borrowers suffer.

“Scots will bear the cost of any job losses at Dunfermline HQ – they should not have to pay these additional costs as well.”

SNP Westminster Treasury spokesperson Stewart Hosie MP added:

“The Dunfermline deal has been sold by the government as the best deal for customers and workers, but that is already unravelling.

“While I welcome the fact that Nationwide customers will benefit from this new rate, why should Dunfermline customers be treated differently.

“It is clear Nationwide have taken on the mortgages only to rip customers off.

“Nationwide have taken over the best parts of the Dunfermline business, and is even being guaranteed taxpayers money to pay for the takeover – the least we should expect is an even handed approach.”

BROWN LETS DOWN LOCAL BUILDING SOCIETY

Commenting on the sale of the Dunfermline Building Society to the Nationwide SNP Treasury spokesperson Stewart Hosie MP, said:

“With the Chairman of Dunfermline branding this deal a “sacrifice” there are serious questions over how the society has been treated by the Treasury and the Financial Services Authority.

“That the Dunfermline is being sold to a building society is welcome – but there remain fundamental concerns over the way this deal has been brokered and if it was necessary at all.

“Their determination to push for a sale of the society and the spin and leaks over the last week are reminiscent of the way the Treasury behaved over HBOS and Lloyds.

“The Dunfermline’s accusation that the Treasury and FSA offered them little more than tea and sympathy adds ever more evidence to the catalogue of failures by the UK Government.”

SNP MSP for Central Fife Tricia Marwick said:

“We must have clarity on the jobs guarantee. Nationwide have said all staff will transfer – but the Scottish Secretary has now said HQ jobs are not secure. For workers in Dunfermline and across Fife there is a need for this to be clarified.

“While Gordon Brown has been jetting around the world, the building society on his doorstep has been let down by his government.

“The Treasury’s refusal to offer a loan has seen the Dunfermline
“sacrificed”.

“The UK Government have split up and sold off the Dunfermline – handing over the strong elements of the society lock, stock and barrel to Nationwide.

“The Dunfermline has a long, independent history as a mutual and has played a major role in Fife society. That must not be lost.”

“TREASURY’S APPALLING BEHAVIOUR IN THE FRAME”

Commenting on the comments made by the Chairman of the Dunfermline Building Society, Jim Faulds, on the Politics Show today (Sunday) the SNP’s Treasury spokesperson Stewart Hosie MP said it was clear that his frustration was borne out of the appalling nature of the process undertaken by UK authorities, and in particular the behaviour of the Treasury.

Commenting Mr Hosie said:

“The process undertaken by the UK authorities has been appalling, and the behaviour of the Treasury is now well and truly in the frame for public scrutiny. It is abundantly clear that they have arrived at this pre-determined conclusion by leaking information to the media on Saturday afternoon. We need to know who did that briefing, and on whose orders.

“There is a distinct impression of spin and lack of fair play – with huge implications for HQ jobs and social housing in Scotland.

“It is clear that a public intervention was necessary to secure the Dunfermline, and the Scottish Government still stands ready to intervene. However, what we getting is an intervention by the Treasury to break up the society, endangering HQ functions, jobs and social housing in Scotland. The Chelsea and Newcastle Building Societies have already recorded similar losses, and have not been met with the threat of break-up.

“The Treasury need to explain their behaviour, and explain what this means for jobs and housing in Scotland.”

Commenting on the range of reports covering the future of the Dunfermline Building Society SNP Treasury spokesman, Stewart Hosie MP, said:

“At present the focus on the Dunfermline’s finances are largely speculation and we must remember that as we await full facts from the society in the coming weeks.

“The importance of the Dunfermline remaining as an independent financial institution is underlined by its major contribution to social housing provision and employment in Scotland. The Dunfermline is clearly also home to the savings and mortgages of many people in Scotland.

“Reports that the Treasury and FSA knew of problems at Dunfermline some time ago and refused to offer assistance are seriously disturbing, and add to the catalogue of failures that are mounting up against the UK government. I sincerely hope these reports do not turn out to be true.

“Our priority must be securing the Dunfermline’s independent financial status, and protecting its customers and their savings. If the society is facing difficulties it must be given all the support it needs.”