Council must wait for ‘Iceland cash’

Dec 5 2008 by Alison Anderson, Perthshire Advertiser Friday

THE £1million of Perth and Kinross Council money invested in the failed Icelandic bank is likely to be recovered, although not by the time the short-term investment is due to end on December 19.

Members of a key council committee were told this week that the council’s money was at the lower end of the scale of investments made by other local authorities, which were all unaware that the perceived safe and flourishing Icelandic economy would crash in October.

In his report to members of the council’s strategic policy and resources committee, council leader Ian Miller gave the assurance: “Since the announcement of the receivership of the Glitnir Bank there has been a co-ordinated effort to ensure that our interests are represented, and I’m pleased to say that we have been able to achieve a ‘broad church’ approach to the issue through CoSLA and with the Scottish Government and Treasury.”

Councillor Miller continued: “I can also report that regular contact is being maintained at senior officer level with a view to ensuring that our deposit is repatriated at the earliest possible opportunity. My view is that the outcome is likely, although the prospect of the money being repaid to the council on the due date of December 19, is, in my view, unlikely.”

Councillor Miller gave the assurance that there would be no impact on council services as a result of the failed bank.

And Councillor John Kellas added: “This £1 million was a very small percentage of the money invested by the council. It highlights the prudent approach by our officers in the past.”

Taking an overall look at the revenue budget for the current financial year, Councillor Miller said he was pleased to report that overall councillor finances were in the black by £2.245 million.

“This is obviously a very satisfying position and reflects the fact that all of our budgets are being properly scrutinised and managed on a daily basis by each of the services and it is this that has led to the excellent position we are now in.”