COUNCIL SERVICES THREATENED BY CREDIT CRUNCH
October 8, 2008 10:56 AM
It has been revealed that Hertfordshire County Council has invested £31 million in Icelandic Bank Landsbanki and Heritable.
In view of the credit crunch it is currently unclear whether the council will be able to recover any of the sums invested.
The Hertfordshire Police Authority has also revealed that it has investments of £3 million in Heritable, but gave reassurance that its reserves total over £8 million.
Liberal Democrat county group leader Chris White commented: "This is rather grave news. The amount involved is 7% of the adult care budget. And who knows which other banks are fundamentally in trouble?"
Chris is calling for the deposits of institutions, including councils and charities, to be protected alongside personal deposits. "It is clear that there needs to be a guarantee for individual people's savings. But council services are can be just as vital to many members of our community."
He added: "I believe the county council is working with advisers to minimise the loss. We will give them every political support in this."
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