No assurances on Icelandic cash
THERE is no assurance forthcoming from Chancellor Alistair Darling that council tax payers will not be hit by the collapse of the Icelandic banks.
Last week, the Scunthorpe Telegraph revealed how millions of pounds of taxpayers' money in North Lincolnshire could be at risk because of the Iceland banking crisis.
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The country's three largest banks, Glitnir, Landsbanki and Kaupthing, have announced huge losses and one has been placed in receivership, rendering the country effectively bankrupt.
It has been revealed North Lincolnshire Council has invested £5.5-million in the stricken Icelandic banks.
The council has confirmed it has £2-million invested with Landsbanki and £3.5-million with its UK subsidiary Heritable.
They are among around 40 local authorities to have invested in the stricken banks.
Today Mr Darling refused to make any pledge on bail-out plans for local authorities.
Speaking at a press conference with Prime Minister Gordon Brown in 10 Downing Street, Mr Darling simply said there are on-going discussions between the Local Government Association (LGA) and the Department for Communities and Local government (DCLG).
Mr Darling said: "There will be a further announcement on Landsbanki very shortly, on action we have taken to allow British businesses and depositors to be able to operate.
"We have done that by taking a security over assets that we have in this country."
For the full story, buy tomorrow's Scunthorpe Telegraph.
8 Comments
by Geoff, Ashby
Wednesday, October 15 2008, 3:58PM
“Reports today of Local Authority 'meeting Ministers for help'. They are also asking for an inquiry into the advice given to councils before the crisis. I suspect it was so called 'government financial experts' who gave the advice, but whether we will ever find out is doubtful. Visit to Iceland by Treasurt officials to demand the repayment of UK deposits resulted in US giving THEM £100m 'to keep their banks operating while efforts are made to get UK money back'!”
by si, scunthorpe
Tuesday, October 14 2008, 9:59AM
“stu, your beloved tories invested cash in the very same banks. there are tory cuncils across the UK who have lost money in the same way.”
by Steve, Bonby
Tuesday, October 14 2008, 8:17AM
“I suspect that the Govt. will provide an unlimited guarantee of returning the funds if Iceland don't come good on repayment, as it is one thing for you and I to make unfortunate investment decisions and stand the consequences, but not their own departments. We will foot the bill either way, so what the heck!”
by Annoyed, Scunthorpe
Tuesday, October 14 2008, 7:50AM
“How the hell can they justify increasing council tax for thier failed investments?? Can I claim from the council if my investments fail?? I think not. Yet another example of rip off Britain and no-body standing up to them - pathetic.”
by Stu, Englishman in my castle.
Monday, October 13 2008, 10:55PM
“Being as these buffoons are Labour, I would say they are unaccountable, they will simply spin their way out of any responsibility and if that doesn't work... they can always blame Mrs T... just remember, Labour is the party of the working classes!”
by David Baxendale, Messingham
Monday, October 13 2008, 10:39PM
“Councils have contingency funds and it is right that they invest this money. However they have a duty of care to invest the money wisely and it appears that Icelandic banks were considered a high risk. Can these Labour buffoons be surcharged for any lost monies?”
by si, scunny
Monday, October 13 2008, 6:32PM
“it's been happening for years. ive read in the telegraph before the council invests money in banks and then uses the interest to fund other projects. all councils do the same thing, it's hardly malpractice and i dont think a public inquiry is needed either. the government just need to ensure all funds are returned.”
by Tony, N.Lincs
Monday, October 13 2008, 6:23PM
“So NLC saw fit to invest(?) some of our council tax money in Icelandic banks.The first question is why?surely this money should have been put to good use.
Secondly can we be sure no more money has been stashed away in another foreign bank.
Finally we now need a far reaching public enquiry into NLC,s affairs to ensurethis does not happen again.”