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Work and Money
A trader in distress
£37 million of council tax money is stuck in a bankrupt Icelandic bank
Valley Fontaine, BBC London
Leader of the Council Cllr George Meehan wants to reassure Haringey's council tax payers that dispite the loss of their money, frontline council services will not be affected
Statement by the Leader of the Council
Cllr George Meehan, leader of Haringey Council, said:
"Like a number of other councils, we do have investments with Icelandic banks, totalling approximately £37 million, which are currently exposed to risk.
"We have sufficient resources to manage these exceptional circumstances. Frontline council services will not be affected because we have sound and prudent financial management in place to protect against such risks.
"I have already had discussions with ministers, local MPs, the LGA and other councillors. Given the sums of public money involved I expect government to protect these investments. Together we will be working to safeguard our assets and ensure our investments are properly protected.
"We follow tight government guidelines and have a good track record for financial management, confirmed by our regular independent auditors’ reports. This issue is the result of the problems in the world economy."
last updated: 13/10/2008 at 14:52