£25m of public money could be lost in banking crisis
9:10am Friday 10th October 2008
SERVICES may be cut or council taxes raised if Somerset County Council is unable to retrieve the £25million it invested in failed Icelandic banks, it has emerged.
A number of banks in the country have had their assets frozen leaving local authorities and other institutions across the country unable to get at their investments.
Somerset County Council says it has £25million invested in troubled Icelandic banks – 2.5% of its overall portfolio.
Finance bosses at the authority are not speculating the likelihood of getting their money back or whether the government will bail them out.
Council leader Jill Shortland said: “I believe the government should be guaranteeing investments.
“They were made in good faith and under government instructions to spread risk and resources over several different banks.
“We have acted prudently and the government should guarantee it.”
The government says it will assess matters on a case by case basis.
Have you say – have local authorities been careless or is hindsight a wonderful thing? Fill in the Your Say box on this page.
Your Say YourGazette
worldlywiseman, Creech St Michael says...
11:00am Fri 10 Oct 08
Now we have public money, invested overseas by the local authority, apparently unwisely so.
The biggest single issue with government and public finance now, surely, is one of accountability.
The state, the local authorities, the banks, whovever it is in civil service, are acting out there without restraint or any sense of responsibility to the community they serve.
It is no longer a civil service, but a civil power trip, peopled by councillors and officers who show little respect for their position as public servants.
We only have one chance to vote them in or out every four or five years. To vote Liberal Democrat again after their track record would be at best irresponsible, and at worst downright sabotage!
lost on earth, Langport says...
8:14am Sat 11 Oct 08
As for me, a tax payer making up any shortfull, go ahead. But I can guarantee I shall definately be voting differently at the next election. I'd suggest for a party that doesn't play the money game with my hard earned cash.
mrf, taunton says...
9:05am Tue 14 Oct 08
informed about money, somerset resident says...
8:38am Wed 15 Oct 08
Your sayYourGazette
Add your comment
Register for a FREE This is The West Country account and you can have your say on today's news and sport by adding comments on articles we publish. The best comments may even get published in the paper.
Please register now or sign in below to continue.
Somerset County Council
In this section
Sponsored Links
Local Services
Local Information
Enter your postcode, town or place name
informed about money, somerset resident says...
10:31am Fri 10 Oct 08
The banking industry was well aware many months ago of the risks surrounding these banks as can be evidenced by looking at the credit spreads for each bank. This is not hindsight but basic housekeeping from someone who has a regulatory responsibility to do their homework.
Do some research yourselves, phone local fee charging independent advisers and see what they were recommending, bearing in mind their reasonability and accountability to clients.