Government to fund Icelandic losses
NORTH Lincolnshire Council will receive a cash injection to help it cope with money lost in the Icelandic bank crash.
The Government has promised local authorities will not be forced to increase council tax in order to cover for the millions lost.
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In October, when the financial crisis hit, the Scunthorpe Telegraph revealed the local council had lost £5.5-million of taxpayers' money.
The authority had £2-million invested with Landsbanki, one of the major financiers to go bust, and a further £3.5-million with its UK subsidiary, Heritable.
Until now, it was uncertain how the funds would be recovered, but Local Government Minister John Healey has now promised a 4.2 per cent funding increase to all local authorities.
Elliot Morley, MP for Scunthorpe, said: "I mentioned this in a meeting with the Iceland finance minister. I expressed my concern for local authorities, particularly North Lincolnshire– I don't want to see people suffer as a result of this," he said.
"I'm very pleased to see this come to fruition, it was important for authorities just to know where they stood.
"This was not the council's fault, the money had been invested sensibly."
For the full story, buy today's Scunthorpe Telegraph.
27 Comments
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by Geoff, Ashby
Friday, November 28 2008, 4:38PM
“Tracy - Sensible comment and deserves an answer from our MP.”
by Tracey, Brigg & Wolds
Friday, November 28 2008, 1:23PM
“10 comments removed!! We rattled a few feathers for some heavyweight to pull strings and the plug on this one!?
I am now advised that the BBC has published the most comprehensive list of local councils with money in Icelandic banks.
//news.bbc.co.uk/1/hi/uk_politics/7660741.stm
There are 469 local councils in the UK. Presumably 358 local councils chose not to invest in the Icelandic banks; with Brighton and Hove and South Norfolk District Councils pulling out of Iceland in time before the crash.
Mr Morley please will you qualify to council tax payers of North Lincs your questionable defence of NLC and assertion that they were not at fault and acted sensibly in investing £5.5 million of our money, and more importantly by failing to respond to the publicised FSA warnings and the evident problems and equally pulling out our £5.5 million before the crash??
If NLC were not at fault, WHO WAS?”
by Tracey, Brigg & Wolds
Thursday, November 27 2008, 7:35PM
“What to become just another proper, heavyweight, patronising, chauvinistic and sullied politician, like the rest. No thanks. There are too many as it is, especially in North Lincs.”
by Blackbeard, Queen Anne's Revenge
Thursday, November 27 2008, 7:26PM
“Mixing it with Heavyweights you say, Are you sure about that. Brace my yard-arm meee laddi”
by Blackbeard, Queen Anns Revenge
Thursday, November 27 2008, 7:23PM
“Give the poor weee lassie a chance, she might have feelings you know. Snap the yard brace on my ship any time.”
by D, Scunny
Thursday, November 27 2008, 6:56PM
“What a surprise to see Tracey the pretend politician mixing it with the heavyweights on here as usual.
Be a proper politician luv or shut up.”
by A Dantata-Denisse, scunthorpe
Thursday, November 27 2008, 5:38PM
“RON,from Brougthon ok yhis is your opinion but I,and the others who said the Govermet was wrong,do not imply that the idea of investing or saving in a foreign bank is wrong,what you called half-wits are telling you and people like you afinancial fact which ever currency that fall like aled ballon is not healthy for investment .period”
by Bob, Winterton
Thursday, November 27 2008, 4:58PM
“Your right Marshall. During the last boom period i was standing in my front garden when a man from the Halifax estate agents came past on one of hes calls and asked me what was my property worth. I told him it was not worth much more than 25k and he said he could easily double that if i wished to sell. I certainly didn't think it was worth more than 25k despite his interest in getting me a bigger sum. Greedy B******S. And this is only one example of many.”
by Bill Cheetham, Bonby
Thursday, November 27 2008, 4:45PM
“I suggest there is a world of difference between saving and investing public money (destined for local authority services and/or contingencies) and the spare capital of clever risk taking, high roller investors. The challenge being reasonably and appropriately made is that there appears to be a majority of far cleverer councils that have exercised the right and proper balance of investment risk with their funds of council tax payers' money.”
by Town Marshall, Deadwood City
Thursday, November 27 2008, 4:41PM
“If only we could all be a tiny fly on the wall of No 10 and listen to the PM confess that matters are even more out of control than they already are with the world economy. If and this is a big if, We pull through this, we should line up all the main players in this disaster. The Bankers for being stupid with other peoples money. The estate agents for fraudulently over valuing property by as much as %20 to %40, and have them all shot.”