CHANCELLOR Alistair Darling has outlined details of a proposal which could avoid the need for the government to nationalise Northern Rock.

While there are critics of this new approach by the government we feel it is probably the right way forward for the troubled bank and, equally importantly, for the tax-payer.

There is no doubt we face many years where tax-payers' money will be tied up in what will be a privately run company. And there is no other company which has had this unprecedented level of government subsidy.

But it is probably the best course of action.

However, there must be strict rules in place before the Northern Rock is sold on and there must be close monitoring of whichever new company takes over to ensure its business dealings are prudent.

Any new owner cannot get itself into the sort of trouble the previous management of the Northern Rock got itself into.

The American credit crunch, a direct result of bad management decisions by money-lenders, has developed into a world-wide problem.

Generally British companies have managed to withstand the pressures and have been much more sensible in their dealings and profitable with the exception of the Northern Rock.

Hopefully the plan announced today will ensure the money already paid to shore-up the bank can eventually be paid back to the tax-payer.