Barry Stamps Political Diary

Over the last few days the full extent of the crisis in the Icelandic bank system has dominated the news headlines. While hundreds of ordinary people have been affected by the Icelandic Governments decision to take control of the Countries banks many local Council’s are also facing the prospect that many million of pounds of their money is now also involved. While it is still unclear just how much public money is at risk it is thought the total could be around £1Billion!

This news certainly started alarm bells ringing and I was not the only Councillor to seek assurances that Stafford Borough Council did not have any money invested in Icelandic banks.

I really pleased when Malcolm Vickers, the Council’s Deputy Chief Executive who has ultimate responsibility for Council finances, told me that the Council was not affected. Indeed it turned out that the Council’s independent advisors had suggested earlier in the year that investments in Icelandic banks should be avoided, and at that time the Council’s Treasury Management Team had removed the banks from the list of those the Council would do business with.

During the conversation with Malcolm I also discovered that the Council had around £26Million currently invested, and I thought we were short of funds!