Thursday 9 October 2008

Redcar Council has £6m in Icelandic banks

In response to a question by Lib Dem Councillor Irene Curr, Redcar and Cleveland Council's Labour Leadership have issued the following statement:

Redcar and Cleveland Council is one of a number of councils that has deposited money with Icelandic banks.

The Council's Cabinet Member for Corporate Resources Councillor Peter Scott said: "There will be no immediate difficulties for the Council as a result of the banks' collapse.

"This is, of course, an unwelcome development, and the position is still unclear but there is no immediate detrimental impact to Council services.

"I strongly support the Local Government Association's call to the Government to guarantee Redcar and Cleveland's cash thus avoiding any negative effects on our taxpayers, and I shall be working closely with our officers to that end."

The Council has £6m with two Icelandic banks - £4m is not due to be repaid until February and £2m in May, 2009.

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