Council: no money in collapsed banks

OLDHAM Council is urging residents not to worry in the wake of the Icelandic banking collapse.

Unlike many local authorities, Oldham Council does not have any money or investments in any Icelandic bank.

More than 100 UK councils — as well as police forces, fire services and transport authorities — have deposits in the crisis–hit institutions.

The Local Government Association said the exact figure invested by 108 of its members was £798.95 million. Police authorities stand to lose nearly £100 million from investments in the crisis-hit banks.

Oldham Council does hold accounts with other foreign banks, including from the Republic of Ireland and Saudi Arabia. Banks are selected after seeking professional advice from bank rating company Sector, which uses a traffic light system to determine stability.

Cabinet member for finance and resources, Councillor Lynne Thompson, said: “The council has made very wise choices on where to deposit council funds, and only makes the final decision after seeking professional advice and after lengthy deliberations.

“When residents pay the council taxes they expect their council to behave in a responsible and diligent way. We are determined to safeguard all council funds and constantly review our banking procedures.”

The National Council for Voluntary Organisations (NCVO) has urged Chancellor Alistair Darling to protect good causes from losing donations invested in the Icelandic banks. The NCVO is already aware of at least £12 million at risk.