Borough still waiting for Iceland cash

TOWN chiefs are still in the dark over whether £5million stashed in bank accounts in Iceland will be returned, it emerged today.

TOWN chiefs are still in the dark over whether £5million stashed in bank accounts in Iceland will be returned, it emerged today.

Ipswich Borough Council is currently working with government in a bid to get guarantees on the safety of the investment with Landsbanki and a UK subsidiary after the collapse of Iceland's banking sector in October.

Around £5million of council cash had been invested in Iceland, a figure that makes up around 12 per cent of the council's entire investment portfolio of around £40million.

Interest from the savings is used to keep council tax down and funds various projects.

John Carnall, responsible for finance at Ipswich Borough Council, said he is not privy to ongoing discussions relating to securing the cash.

“The Local Government Association is picking this up on a national level and is speaking to the government which is in turn speaking to the Icelandic government and administrators in Reykjavik.

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“We haven't heard any firm news about what the likely outcome will be yet.

“I have not heard anything that makes me cheer or cry.”

Mr Carnall said allowances will have to be made in next year's budget for around £200,000 in interest that had been due on the Icelandic investments.

However he added that government assistance may mean that figure being covered for the coming year.

“If that is the case we can proceed without it having an impact.

“It is not going to tip Ipswich Borough Council into bankruptcy or affect services at all,” he said.

Are you concerned about the at-risk £5m? Write to Your Letters, Evening Star, 30 Lower Brook Street, Ipswich, IP4 1AN or e-maileveningstarletters@eveningstar.co.uk