Subject: Treasury's legal representatives on Northern Rock
Date: 17 June 2008
Text of request:
the total cost of legal fees incurred by The Treasury throughout the period of the process of agreeing a guarantee with Northern Rock in 2007 through to the most recent fees incurred in respect of the privatization.
...specify each of the individual external and internal legal advisers used, what they were retained for.
Text for disclosure:
The Chancellor informed the chairs of the Treasury Committee and Public Accounts Committee on 11 October 2007 that Northern Rock has indemnified the Treasury in respect of certain costs and expenses, including legal advisor costs within the scope of the request. Treasury judge that where publication is imminent, it is not in the public interest to divert resources to make individual ad hoc disclosures ahead of the general publication. Treasury plans to publish information about the cost of the advice it received in relation to Northern Rock. Under section 22 of the FOI Act the department is not required to provide information in response to a request if it is held with a view to its publication by the authority at some future date (whether determined or not).
The Treasury have their own in-house legal advisers, who are members of the Treasury Solicitors Department. In addition, members of the Litigation Division of the Treasury Solicitor's Department have been retained to act in relation to the ongoing judicial review proceedings relating to taking Northern Rock into temporary public ownership. External legal advice has been provided by Slaughter and May. Counsel have also been consulted.
The principal partners of Slaughter and May consulted during the relevant period are Elizabeth Barrett, Guy O'Keefe, Sarah Paterson, Stephen Powell, Charles Randell, George Seligman, William Sibree and Chris Smith. The following Counsel were also consulted: Philip Havers QC, Philip Sales QC, Christopher Vajda QC, Paul Nicholls, Jemima Stratford and Jonathan Swift. The names of the Treasury's senior legal advisers are available on the Treasury website and are thus exempt from disclosure under section 21 of the Act (information accessible by other means). Treasury has not provided the names of more junior lawyers, as we conclude that to do so would breach the first data protection principle.
The Treasury is unable to provide details as to why specific legal advisers were retained as to do so could reveal the substance of the legal advice sought or given by those advisers, which is subject to legal professional privilege. The Treasury is however able to say that Slaughter and May provided advice, in particular on commercial issues, including in the preparation of what became the Banking (Special Provisions) Act 2008 and the secondary legislation made under that Act. They have also been retained to act on behalf of the Treasury in any litigation arising out of the decision to take Northern Rock into a period of temporary public ownership.