Church will debate savers' crisis

The Presbyterian Mutual Society went into administration in November

Thousands of savers who lost their money when the Presbyterian Mutual Society collapsed will be given a voice at the Church's General Assembly.

Moderator Dr Donald Patton said there would be a debate and questions would be taken at the assembly at Church House, Belfast, on Tuesday.

It follows news that some savers plan to protest at the assembly.

"We understand that they are angry. They have suffered months of distress and anxiety," said Dr Patton.

"The Church absolutely cares.

"There will be a full debate... a speech and questions. It will be an uncomfortable debate because of the anxiety and emotion."

The Presbyterian Mutual Society is legally separate from the Church.

Nearly 10,000 savers were hit by the collapse of the society, which was put into administration last November.

Speaking on BBC NI's Sunday Sequence, the moderator said the savers were the Church's people and it had been working on their behalf to get money from the government to help them.

'Betrayed'

Last week, Mervyn Redmond, a spokesman for the Shore Street PMS Action Group in Donaghadee said many people "felt betrayed" by the Presbyterian Church.

He said they would be making those feelings felt at the opening session of the General Assembly.

Mr Redmond told BBC NI's Talk Back: "We and our families and forebears have always turned to the Church in times of serious difficulty, but during this desperate situation we are reduced to confronting the Church leaders and elders because they have refused to take a compassionate and fruitful initiative."

The leaders of the Catholic, Anglican and Methodist churches in Ireland have joined in calls for action to help the savers.

Cardinal Sean Brady, Archbishop Alan Harper and Rev Aian Ferguson said they have become increasingly aware of the difficulties faced by PMS members.

They said government should take "urgent action" to help out.

The Presbyterian Mutual Society was set up in 1982 as an investment vehicle for members of that Church.

Individuals or Presbyterian congregations could each buy up to £20,000 in society shares, and they could lend the society much more. Often they received healthy returns of up to 6% a year.

It got into trouble in 2008 after the government announced a guarantee scheme for savers in banks. It protected deposits up to a value of £50,000.

The PMS was not covered by the guarantee, leaving many savers to conclude their cash would be safer in one of the protected banks. That led to a run on the PMS.