COUNTY COUNCIL HAS £12million INVESTMENT AT RISK IN ICELANDIC BANKS

October 9, 2008 12:10 PM

This morning the financial positions of the district councils have been reported. The County council investments in Iceland's banks are as follows:

Between October 07 and January 08 the administration in charge at Shire Hall invested £12million in Landsbanki and Glitner banks in Iceland. This is out of a total investment of £165million.

Statement by Gloucestershire Liberal Democrat leader Cllr Jeremy Hilton:

"Late last night the extent of the county council's investment in the failing Icelandic banks was revealed. £12million of local taxpayers money is at risk this morning. This money was invested in a short period of just 3 months at the end of last year. We are currently seeking reassurance from the council's administration who invested this money that everything possible is being done to prevent these investments failing. This is potentially a huge blow to the council's financial position and follows the cabinet meeting just a couple of weeks ago which revealed the poor state of the council finances. Already the county council's cabinet has admitted their projected forecast of raising £11million by selling council assets was a mistake. The council budget will be £6million short of the funds needed for public services in Gloucestershire. Now we are faced with a further blow to the council's financial position. We have asked a number of questions to senior council figures on the state of investments being made on behalf of people who live in the county. Local people need an explanation of why £165million of their taxpayers money is sitting in bank accounts as investments. Where is the remaining £153million invested, and is this also at risk? We will work hard to make sure Gloucestershire public services do not suffer as the council leaders work out how to try and recover the millions at risk."