Icelandic worries
MILLIONS of pounds of taxpayers' money is at risk after local authorities made deposits in Icelandic banks.
The councils insist they followed Government guidance and consulted independent financial advisors.
Kirklees is down to the tune of £1m. Not a lot of money compared to others in the same position, but still a matter of concern that it is at risk. West Yorkshire Police have £6m deposited.
Nobody can blame the local authorities. They put money in these banks at a time when their credit ratings were highly ranked and there was no suggestion of any trouble ahead.
The Local Government Association is still trying to work out the sums involved, but the first estimates are that £600m is involved, spread among more than 80 local authorities.
Frontline council services are not under threat, the association insists.
Excuse us?
We rather think that the precise reason the money was given to councils was to pay for delivering local services.
Otherwise, what's the use of it? Why levy council tax levels which are as high as they are?
No doubt someone will come forward to say that the system does not work in this way. But to everyone else this will be viewed as public money which must be returned to local authorities.
Government ministers need to come forward with specific action rather than the vague promise to "fight to get every single penny back".