Many good firms could use Rock’s employees

Feb 20 2008 by Andrew Hebden, The Journal

IN the midst of such a momentous week for the North East, it has been hard to hold a conversation with a business- man or woman in the region without talk eventually getting round to the Northern Rock saga.

I wrote in this column last week that the crisis had the potential to threaten the generally bullish mood among the region’s business community as talk of recession looms large.

We’re still no nearer knowing the scale of the job losses as new chairman Ron Sandler looks at scaling back the Rock’s mortgage operation and the knock-on effect on the local economy remains to be seen.

I still sense a gritty determination that the region will ride out the difficult period ahead and if good people end up leaving the Rock, then there are plenty of fine businesses – albeit on a much smaller scale – which could benefit from their talents.

Today we feature a real success story in the shape of Newcastle-based finance co-operative Shared Interest, which has revealed ambitious expansion plans to treble the amount of cash it controls. The firm may employ just 30 staff at present but it’s just the kind of forward-thinking business of which the region should be proud.

In the mainstream banking sector, yesterday’s much-anticipated results from Barclays did not expose the black hole that some analysts had been predicting and portrayed a bank in much better shape than many of its international rivals.

But there was evidence in other results of an increasingly gloomy outlook among consumers – with Cadbury reporting a rise in chocolate sales, Dominos shifting more and more pizzas and bottles of Brown Ale being consumed in record numbers. All this amounts to growing proof that Britons are saving their cash by staying in and comfort-eating at home.

Back to the Rock and yesterday this newspaper called for Mr Sandler to be given the chance to get on with the tough job ahead.

Just a few hours later, BBC business editor Robert Peston reveals on his blog that the new man at the helm is enjoying non-dom status, thus prompting a fresh political storm and even some claims that he is unfit to hold the post. Welcome to life at the Rock, Mr Sandler. And good luck.