Last thoughts before the Northern Rock EGM

Writes Robin Ashby:

Northern Rock has sold off over £2 billion of prime assets. The Unite trade union, from supporting Northern Rock directors against the major shareholders, are suddenly concerned about that self off and the impact on their members job prospects. (Literally, told you so. I had been in discussion with one of their national officials 48 hours earlier on this topic and got the brush off when I raised exactly this worry)

Government-by-leak continues as it seems they have lined up an executive chairman if they decide to nationalise. This would be a tremendous political coup for the Liberal Democrats, who have advocated this outcome as the least-worst for the taxpayer since well before Christmas. It seems they have forgotten that shareholders are voters too! And its a kick in the teeth to Parliament, before whose Treasury Select Committee the Chancellor of the Exchequer appeared last week. He could have put all this on the table, but declined to do so.

The directors continue to spend our money, seemingly without any sense of responsibility towards us. They have commissioned consultants at vast expense to harangue us in our homes to vote against the big shareholders, while urging us to back their unknown placemen and women as non-executive directors. It appears they are splashing out millions in secret bonuses to 179 senior staff. Undoubtedly there could be a retention problem with the most able of them, and some sort of loyalty scheme might well be in order, but the reported figures are disproportionate at best.

Although it is outside of the remit of NRSSG, I have had discussions with local MP Alan Beith, and on Saturday he called for "a detailed inquiry focussed on learning lessons from the debacle." This doesn't go quite as far as some would like, but is certainly a start. I have also pushed Vince Cable MP who is briefing the media today on the matter.

Despite all the media exposure, I can tell you I have had no approach from the company to brief me on anything. Despite this, I continue to feed in proposed responses to media calls to their Press Department so they are not taken unawares. I can tell you however that I spoke again to Luqman Arnold of Olivant last week, and he remains convinced that he and his supporters, working with the support of the major shareholders, can rescue Northern Rock. But time is marching on, and the company is less well placed than when he first offered to step in. (Prime assets sold, extra bonus payments made to staff, pay rises given which will increase redundancy costs, the continuing slow erosion of confidence, a stupid dispute with the major shareholders, a blatant disregard of our interests. How long will this go on? We need to hang together lest we hang separately!)

Regretfully I have to tell you that I have learned only this morning that for many of us whose shares are held in ISAs and PEPs, our votes have already been cast on our behalf by brokers running nominee accounts with discretionary powers. I have had a terse conversation with my own (Wise Speke/Brewin Dolphin) who have voted my wife's shares exactly opposite to what she would have wished. They hide behind the fine print of client agreements which they oblige us to sign even though it can hardly be considered informed consent.

Over the weekend I've done a number of media interviews and today and tomorrow will be solid with them (including US television). Media will be buzzing around the Newcastle Arena tomorrow, and may well ask you if you'd like your say, so be prepared!