News Article - Is this significant???

  • sympatheticsister
  • 28/10/08 31/05/09
  • not a depositor
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Posted: Mon, 01/12/2008 - 12:35

I came across this short item in the local Derby paper.(I have also posted this in the News Section) but am copying it all here as so short.

Is this signicant?
Does this mean HMG are thinking there will be money back for KSFIoM?? Or do they mean other Iceland banks and are treating all the same.
What are these exceptional regulations??
Should we contact John Healey MP - has anyone been in touch with him already?
Should we ask the paper to follow this up and remind them this is the same bank that they did a front page depositors story 10 days ago??

What do you think?

ICELAND CASH REPRIEVE FOR AUTHORITIES.
Councils with cash stuck in Icelandic bank will not have to account for the money as 'lost' in their budget for next year. Local Government Minister John Healey said it would not be fair to make them do so while councils are still unsure how much they will retrieve. Amber Valley Borough Council had £1m deposited in Kaupthing Singer and Friedlander a subsidiary of the troubled Landsbanki in Iceland. Mr Healey said: "This will give them time to adjust their medium term financial plans and be clearer about recovering their money before making decisions that affect their budgets or their council tax." He said he had written to all authorities telling them he would soon issue an exceptional regulation allowing them to leave the trapped cash out of their calculations.

From Derby Evening Telegraph 28/11/08

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Poor reporting

  • allyourbase
  • 12/10/08 31/05/09
  • a depositor
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  • Mon, 01/12/2008 - 13:25

I'm really start to lose faith in the media as their reporting standards just keep on falling:
"had £1m deposited in Kaupthing Singer and Friedlander a subsidiary of the troubled Landsbanki in Iceland"

Kaupthing is a separate bank, and nothing to do with Landsbanki. Perhaps I should contact Derby Evening Telegraph and point out their error.

I don't think the article itself is significant for us. If anything, it sounds like the Local Government Minister is preparing councils to write off their deposits.


"Councils with cash stuck in

  • KrapthingSwindl...
  • 15/10/08 31/05/09
  • a depositor
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  • Mon, 01/12/2008 - 13:59

"Councils with cash stuck in Icelandic bank will not have to account for the money as 'lost' in their budget for next year. [...] This will give them time to adjust their medium term financial plans and be clearer about recovering their money before making decisions that affect their budgets or their council tax."

Hmm, surely this just means that the councils will not have to increase markedly the council tax before the next election and thus avoid a significant deleterious effect on Labour's electoral performance. I could be wrong ...

KSF


Council Tax

  • frog
  • 10/10/08 13/09/09
  • a depositor
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  • Mon, 01/12/2008 - 15:06

I think that as the money was not regarded as necessary for day-to-day business, the main point of this decision is to stop the councils raising tax so they could have a new buffer for spending. The taxes they raise in the coming year should cover the slice of services they have to pay for anyhow.

I think it is probably not politically motivated - more like a way to stop the councils panicing and if the money comes back - have pulled in too much!