Icelandic cash warning for Kirklees Council taxpayers

Jun 13 2009 Huddersfield Daily Examiner

TAXPAYERS have been warned they won’t see “every penny” returned from a failed Icelandic bank.

Kirklees Council had £1m invested in Landsbanki when it went bust last year.

Negotiations are continuing to get the money returned.

Kirklees deputy leader Clr Kath Pinnock said: “The Local Government Association is negotiating on behalf of all the councils who invested in the bank because they are more powerful than many councils negotiating individually.

“We’re certain of getting 80% back and we’re increasingly hopeful that we will get the majority of the rest, but I doubt we will get every penny.”

Clr Pinnock added: “This is £1m that we need. The money belongs to local people, not an Icelandic bank.”

More than £1bn of public money held by more than 100 councils was put at risk when Landsbanki collapsed last October.

Earlier this week Parliament’s Communities and Local Government Select Committee criticised councils for complacency, lack of expertise and inaction.

But Clr Pinnock said this was unfair. The Cleckheaton Lib Dem said: “Hindsight is a wonderful thing but I don’t think our finance people can be criticised.

“Unlike some councils, we didn’t invest huge, risky amounts in Landsbanki.”