For those of you who contacted the UK treasury as I did with regards to UKAR and there conduct towards the barn and the mechanics I have received a response... NOT FROM UKAR mind but read for yourself. . Dear Mr Southgate Thank you for your email dated 22 September regarding UK Asset Resolution (UKAR). As it is not practical for Ministers to respond to all the letters they receive, I have been asked to reply on their behalf. Your letter raises the concern that UKAR have decided not to renew the leases of two business tenants on their Crossflatts site. I should begin by explaining that while UKAR is entirely owned by the Government, the Governments interest is managed by UK Financial Investments (UKFI) on an arms-length basis. UKFI was created to ensure that where public money has been made available to banks, the Government would not intervene in day-to-day commercial matters. Interference of this kind may considered anti-competitive by financial markets; which ultimately poses an obstacle to UKFIs primary objective of protecting and creating value for the taxpayer as shareholder. In view of this framework, I am sure you will appreciate that it is not appropriate for the Government to comment on UKARs individual transactions, which represent commercial decisions made by its independent management team. As with any other financial institution, UKAR will always need to balance customer interests, market competition, and shareholder requirements when considering its commercial operations. However, I note that UKAR have themselves commented publicly on the matter raised in your email. In their statement they acknowledge the impact of this decision, and add that at the time of making both businesses aware of its intentions to sell the property in March 2014 an offer was made to extend both leases by 18 months, and to assist with their relocation. Thank you for taking the trouble to make us aware of your concerns. I hope my response has been useful in clarifying the Governments position. Yours sincerely, Samuel Taylor Financial Stability HM Treasury
Posted on: Tue, 07 Oct 2014 09:53:46 +0000
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