Page last updated at 16:49 GMT, Thursday, 9 October 2008 17:49 UK

Councils have Icelandic bank link

Organisations across the north-east of England have confirmed investing millions of pounds in Icelandic banks.

Northumberland County Council has 23m in Landsbanki Islands, Glitner and Kaupthing, Singer and Friedlander banks and UK subsidiary Heritable Bank.

Gateshead Council has 4.5m and Northumbria Police Authority 3.5m in Heritable Bank.

Redcar and Cleveland Council has 6m in two banks and Derwentside Council 7m invested in three banks.

All organisation said they were "monitoring" the situation.

The position is still unclear but there is no immediate detrimental impact to council services
Peter Scott, Redcar and Cleveland Counci

Councillor Andrew Tebbutt, executive member for corporate services at Northumberland Council, said: "Obviously it is too early to determine the extent to which the council is at risk, but the situation is being closely monitored.

"We are liaising with other public bodies as to the potential impact and we will keep people advised as more information becomes available."

Derek Coates, strategic director of finance at Gateshead Council added: "We do not have any money deposited directly in Landsbanki, however we have money invested in their UK subsidiary Heritable Bank, which is still trading normally, but is being run by receivers while they find buyers for the business.

"We are therefore seeking clarification from the administrators and our financial advisers about the situation."

Councillor Peter Scott, of Redcar and Cleveland Council said; "This is, of course, an unwelcome development and the position is still unclear, but there is no immediate detrimental impact to council services."

Derek Coates, treasurer to Northumbria Police Authority said: "The police authority has 3.5m invested in Heritable Bank and is currently seeking clarification from the administrators and our own financial advisers about the situation."

Gordon Brown said he was considering "further action", but the government is not offering to guarantee authorities' deposits with Icelandic banks.

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Icelandic bank crisis hit councils




SEE ALSO
In full: Councils facing losses
09 Oct 08 |  UK Politics
Councils fear for Icelandic cash
09 Oct 08 |  UK Politics

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