Dorset County Council has £28.1m in troubled Icelandic banks, the county's police authority £7m, and the fire service £1m that's £36 MILLION of our money in danger of being lost to failing Icelandic banks!
County council leader Angus Campbell said: "The council has followed government guidelines and deposited its cash balances with a wide range of banks to ensure that any risk is minimised. The council invested in two banks Landsbanki and Heritable, a subsidiary bank. Do you believe two high credit risk banks banks are a "wide range" ?
BANKRUPT
The Treasury said it was looking into the issue of protection for councils but has, so far, given no guarantees. Cheers chancellor - tighten your belts folks!
"Iceland is bankrupt," said Arsaell Valfells, a professor at the University of Iceland. "The Icelandic krona is history. The IMF has to come and rescue us."
BUDGET IMPLICATIONS
The police and council said there would be budget implications if the money was not recovered.(well duh! ).
In March of this year Simon Watkins of the Financial Mail pointed out that Icelandic Banks were the most risky. Source... (There are even earlier citatations of high risk Icelandic banks - 14/02/2008)
We're not the only ones - the largest confirmed deposits
Kent County Council, £50m
Nottingham City Council, £42m
Transport for London, £40m
Norfolk County Council, £32.5m
Dorset County Council, Hertfordshire County Council, £28m
Barnet Council, £27m
Somerset County Council, £25m
Hillingdon Council, £20m
Neath Port Talbot Council, £20m
Westminster City Council, £17m
Hertfordshire County Council, £17m
Brent Council, £15m
So whilst raising Council taxes, cutting services and pleading poverty Dorset County Council quietly lent over £28m of surplus tax payers money to dodgy overseas banks.
The Icelandic banks were on an approved list from central government. They offered a high level of security and interest. Not the council's fault that the we're falling into global recession is it?
Ah well... in for a penny, in for a pound eh?!
The most irritating thing about this crisis is that it's all about SENTIMENT and confidence. The whole thing is being worsened by mass-hysteria.
Whilst I'm on this soap box - there is much talk about "why should the tax payer bail out the banks that lent irresponsibly to each other and businesses" - but it's not like the tax payer hasn't benefited from that in the first place! Thanks to irresponsible lending, everyone is reaping the benefits of massive overdrafts, holidays abroad, new, large and SECOND homes, new TVs, a regular supply of over-priced BOOZE etc. etc. Isn't it about time we took some of the responsibility for this, put our tax-paying hands in the air and say "it's a fair cop, we BORROWED VERY irresponsibly for 15 years or so, so now we all pay for it."
Bring on the debate!
Posted by tuzo, on 10-10-2008 15:00,
responsibility? carlito? you are never in charge of your own mouth and i should imagine hardly ever in charge of your own two feet, good luck with your debate
Posted by Bentley, on 10-10-2008 15:53,
Good shout Carlito my only concern is what the f@*k are the council doing with 28 million quid? I have an idea the council may like to consider, how about building some social housing for the thousands of local people on low incomes who are at the mercy of over inflated private rents. You already own the land so that would cost bugger all, and 1 million should be enough to build ten to fifteen houses so we are looking at somewhere between three and four thousand houses or a couple of thousand houses and three or four thousand flats. Now that would be doing something useful for the community by whom you have been elected to look after their interests. I was under the impression that the councils received money from government and local council taxes to use to provide services to the community. I know this next statement is a bit radical even for me but: if there is any surplus at the end of the year then it should be spent on the community for the community by the people who have been elected represent the communities best interests and not stashed away in some dodgy offshore bank
Posted by cordless, on 11-10-2008 21:41,
beside the £36 million we just lost, did you know they also lost around £ 36+ million from the pension fund belonging to (us the ratepayers)DCC,WDDC.MAGNA HOUSING,police,firemen plus other local councils and the ones i don't know(all our ratepayers employies).this loss arose from a deal DCC pension fund bought a block of flats, off plan, with part cash, plus they took out a mortgage of millions to cover the shortfall. like us, when flats were finished they couldn't sell them and defaulted on the mortgage.so now the banks are selling the block of flats and the pension fund will make a huge loss exspected to be around £35+ million .so keep paying your rates otherwise the dopes won't have any toys to play with
Posted by Carlito, on 13-10-2008 08:41,
Tuzo - I'm glad I can rely on you for a completely useless comment. You should write one of those books for people who enjoy reading and dumping at the same time. "Tiresome and Irrelevant Drivel - A collection of badly worded limp attacks with which to curl one up to."
If you have nothing of any value to input here Tuzo then I respectfully suggest that you take your right to freedom of speech and use it on a thread where your dull ramblings are more valued.
Posted by tuzo, on 13-10-2008 15:49,
well i am glad (that you are glad) carlito and thank you for your career advice... did you buy that book or borrow it, (with which to curl one up to? not sure how that is done?) However i dont think this is for me, but will keep an open mind.
Posted by goccibos, on 14-10-2008 11:56,
Oh how I wish people remember this next time we have Local Government elections instead of voting the same bunch of bumbling gentleman farmers in! These people are anti-Europe when it come to farming and subsidies but are happy to waste a few of our Dorset £ in a floating lump of ice.
Ironic when they all drive BMW's, Volvo's and Subaru's
Posted by Dorsetman, on 18-10-2008 23:16,
Well said goccibos
Posted by Shibby, on 23-10-2008 07:53,
It amazes me how little has been said about this awful debacle, but don't worry everyone if we do actually lose this money, we will all have the privelidge of paying higher rates of council tax, which we will all do, maybe the more militant among us will mutter under their breath while signing the cheque.
But act now! - Show Angus Campbell your disdain for his piss poor financial management, don't buy food from Iceland (c'mon Lidls), I have even boycotted ice in my drinks!
Posted by draino, on 31-10-2008 07:22,
Well at least Ronco and his "civic chairmen" mates can carry on regardless, I'd quite like to network and dine with other members of my industry at your your expense too.
Dorset County Council has £28.1m in troubled Icelandic banks, the county's police authority £7m, and the fire service £1m that's £36 MILLION of our money in danger of being lost to failing Icelandic banks!
