Lib Dem Leads Scrutiny on Mid Devon Investment Policy

11.27.10am BST (GMT +0100) Mon 20th Oct 2008

The Liberal Democrat Chair of Mid Devon District Council's Scrutiny Committee is arranging a special meeting of the committee to consider the background to the Council investing £1.1 million in a doomed Icelandic bank.

Cllr David Nation said "This is a very important matter and the precise consequences for local residents of £1.1 million of their money being lost as a result of the collapse of the Icelandic bank are as yet unknown. Rumours abound and I have already indicated to the Council leader that my group will join in any pressure being put on central government to fully compensate Mid Devon if ultimately we lose out."

He added "Many local authorities up and down the country have been caught out by this crisis and there is nothing so far to suggest that the Council did anything other than abide by the advice of the Government in it's investments. However, I feel that we would be negligent if we did not examine not only whether our policies and procedures have been accurately followed but also whether they can be tightened up to avoid such disasters in the future."

It is known that Mid Devon's Conservative Executive will consider a report on the banking crisis from the Council's Chief Executive when it meets on 30th October. Cllr Nation said "It has not proved possible for Scrutiny to meet before then. I anticipate the Executive will take any urgent action necessary then but we shall meet soon after and I am sure that the Executive will consider whatever conclusions we reach as soon as possible afterwards."