"MOLE VALLEY’S MONEY IS SAFE" SAYS COUNCILLOR
The Local Government Association has called on the government to ensure that no local authority is out of pocket following the collapse of Icelandic banks. This follows on from the news that Surrey County Council had £20 million on deposit with one of the failed banks.
In the meantime, Mole Valley’s councillors and officers have moved quickly to reassure residents about the District Council’s finances.
Conservative Councillor Ben Tatham, Portfolio Holder for Finance said:-
"Mole Valley District Council has no money deposited with any Icelandic banks. On average the council has something like £40m invested on average at any point in time.
Although our investment strategy is as risk averse as it possibly can be, recent developments have shown that currently nothing is totally risk free. The only way we could achieve 'guaranteed' security would be to take all our money out of the money markets and 'put it under the bed'. That would not be sensible."
Councillor Tatham went on to say that the Council could have placed all its money with the Government but that would make the credit crisis worse and achieve a lower rate of return. It is the actual removal of local authorities’ money from the stock and money markets that exacerbates the crisis.
Councils invest their money in accordance with advice from Government and credit rating agencies.
Malcolm Johnson – Communications Officer – Conservative Group of Councillors for Mole Valley
13th October 2008