MP demands Government bail out household names MFI and Woolworths

Nov 30 2008 By Mark Aitken Political Editor

HIGH street giants could be bailed out by taxpayers to stop them going bust like Woolworths and MFI.

Treasury committee chairman John McFall said yesterday that he wants the Government to buy a stake in firms to secure their future.

The MP is also demanding they name and shame banks who refuse to lend or give companies a raw deal.

The Treasury are investing £37billion in Royal Bank of Scotland, HBOS and Lloyds TSB to stop them going under.

Business Secretary Peter Mandelson is drawing up a list of other industries and businesses important enough to be saved.

It is based on the number of staff, the wealth generated and research they do.

McFall said: "I see a case for the Government taking an equity stake in good companies and corporations to help them through the recession.

"The Royal Bank of Scotland would have gone bust without the Government which is now a majority shareholder. But it only wants to be there until the company can get back on its own two feet again.

"Take Rolls-Royce. It was nationalised in 1971 when it was on its knees. It is now one of the major global companies.

"We don't want to see companies like that go out of business."

The West Dunbartonshire MP also called for a website for small businesses to rate banks' behaviour.

McFall said: "The Government put £37billion into the banks but they are hoarding their capital.

"We need to monitor how much the banks are lending and where they are lending it to."

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