UK GOVERNMENT URGED TO ASSIST CREDIT UNION DEPOSITORS
Gordon Brown and his government are constantly portraying themselves as the saviours of the financial world. In rapid succession they have propped up ailing banks, provided support and funding to industry and even found time to organise a G20 summit.
Indeed their largess knows no bounds and they have even found funding to provide support beyond their legal obligations by helping struggling UK depositors in the failed Icelandic banks.
On one issue however there seems to be an element of foot-dragging. Treasury support is not forthcoming to assist the thousands of small investors who have money tied up in the Presbyterian Mutual Society in Northern Ireland (the Credit Union is currently in administration).
The Treasury have expressed `sympathy' but so far there has been no firm action to guarantee the full value of deposits.
The Celtic League has pressed the UK Chancellor on the issue (see below):
«Chancellor of the Exchequer Rt Hon Alistair Darling MP HM Treasury Horse Guards Road London SW1A 2HQ
25/05/09
Dear Minister,
Ref: (Northern Ireland) Presbyterian Mutual Society.
Can we ask what steps that the Treasury are taking to provide assistance to depositors in the above Credit Union?
We note that the United Kingdom government has provided considerable investment and support to secure the savings of depositors in failed institutions in Britain even where this went beyond their legal obligations, as with investors in Icelandic banks, and we would trust that the same security will be afforded to those hard working depositors who invested in the PMS.
We look forward to a positive response.
Yours sincerely,
J B Moffatt Director of Information Celtic League»
Background article on Cooperative News here:
House of Lords Question and reply here (Hansard):
«Presbyterian Mutual Society of Northern Ireland Question Asked by Lord Alton of Liverpool
To ask Her Majesty's Government what consideration they are giving to the situation of savers who have deposited funds with the Presbyterian Mutual Society of Northern Ireland; and what action is being taken to protect those savings. [HL3013]
12 May 2009 : Column WA196
The Financial Services Secretary to the Treasury (Lord Myners): The Government sympathise with the difficult situation faced by members of the Presbyterian Mutual Society of Northern Ireland. Organisations such as the PMS which are registered as industrial and provident societies (IPSs) are exempt from regulation by the Financial Services Authority (FSA) in respect of accepting deposits in the form of withdrawable share capital. Societies should make clear to members that their deposits are risk capital, held in the form of share capital that can be withdrawn. Under IPS legislation, any one member's shareholding is limited to £20,000. Being outside of FSA regulation, the PMS and its members do not contribute to, and are therefore not protected by,»
J B Moffatt Director of Information Celtic League
25/05/09
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