MPs angered by RBS role in Cadbury takeover
January 21, 2010
MPs have expressed their anger over the fact that the takeover of Cadbury by Kraft will in part be funded by the Royal Bank of Scotland. Politicians across the board are appalled that the state owned bank which was bailed out with taxpayer’s money to the tune of £20 billion is now offering a loan of £630 million to Kraft so that it can pay for the British confectioner.
Treasury spokesman for the Liberal Democrats, Vince Cable is furious and has written to Business Secretary Lord Mandelson asking him to explain why a bank which is owned by the state is involved in a business deal which is in no way beneficial to the British economy. Leader of the Liberal Democrats, Nick Clegg has also been asking why a government owned bank is now involved in a takeover deal which the government said it would oppose. He went onto point out that RBS had been saved by the taxpayer and wondered how those taxpayers were going to respond to the news that their money was now being used to put British workers out of jobs.
Thousands of jobs are under threat because of the Cadbury deal with American food giant Kraft. Gordon Brown initially tried to assure workers that their jobs were safe. Cadbury’s chairman, Roger Carr however said that Mr. Brown was in no position to make such guarantees. Kraft has a reputation of shedding jobs and Mr. Carr said that job cuts were likely at the chocolate manufacturer.
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