Questions raised over HBOS merger

HBOS has been on the agenda at the SNP conference

The SNP have questioned whether the proposed merger of HBOS and Lloyds TSB should go ahead.

During a debate at the party conference in Perth, members claimed "major questions" remained to be asked about the planned take-over.

Those included whether the bail-out announced for banks as part of the £50bn banking sector rescue package depended on the merger

They also called for assurances that key functions will be kept in Scotland.

Delegates at the conference unanimously backed a resolution which raised questions about the takeover.

The resolution also stated that the Bank of Scotland is "hard-wired into the social and economic fabric of the nation".

Rally call

Stewart Hosie MP, the SNP's Treasury spokesman, told the conference that recapitalisation had become necessary as bank share prices plummeted.

"But we need to know one or two things," he said.

"Firstly, is the additional capital for the merged Lloyds TSB-HBOS conditional on the merger - or should it be available should another bid emerge?"

He also urged Mr Brown to give a commitment to work to keep jobs and decision-making functions in Scotland, and for all parties to "rally round" the Scottish Government's intention to maximise the number of jobs in Scotland if the merger went ahead.