Council could claim back up to £4.2m

UP to £4.2-million of North Lincolnshire taxpayers' cash could be clawed back from stricken Icelandic banks, council chiefs have been told.

Finance bosses told an audit committee meeting the council could recoup all but £1.3-million of the £5.5-million it had invested in Heritable and Landsbanki banks which collapsed last October.

But, the council was warned, administrators have not finished looking at banks' affairs and the situation could change, leaving the council with potential losses of up to £3.3-million.

After revealing the figures, finance chief Mike Wedgewood was praised by councillors on the audit committee for swift action preventing further losses.

Mr Wedgewood said: "Overall it's been a difficult year. But there are signs of a positive result."

At the time of the banking crisis, North Lincolnshire Council, which includes Barton, Brigg and the Isle of Axholme, had £3.5-million invested in Heritable and £2-million in Landsbanki.

North Lincolnshire Council has escaped criticism from national watchdog the Audit Commission on the Icelandic banks affair - unlike close neighbour North East Lincolnshire Council.

The Grimsby-based authority was criticised for investing money after Icelandic-institutions were no longer safe place for taxpayers money.

Humberside Police Authority had invested £5-million in the Icelandic Banks.

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