Prime Minister Faces Pressure Over Presbyterian Mutual
01 April 2009
Released: 31/03/09
The Treasury in London has written to European Parliament Member Jim Allister in his attempts to safeguard investors in the failed Presbyterian Mutual Society.
And speaking on the BBC's Talkback programme with David Dunseath Mr Allister today said there had been governmental failures over the protection of Presbyterian Mutual which had to be faced up to by the Stormont Executive and the Treasury in London.
Ten thousand investors are in danger of losing their life savings unless the Government steps in to save the Society after it went into administration last November.
And after the weekend’s Government intervention to save Scottish-based Dunfermline Building Society in Gordon Brown’s own constituency of Kirkcaldy the Prime Minister was under more pressure today to act in connection with the Presbyterian Mutual situation, said Northern Ireland Jim Allister MEP.
“It’s a disgraceful situation all these Presbyterian investors are facing. The Government needs to act now”, he said.
European Parliament Member Jim Allister wrote to the Prime Minister Gordon Brown and to the Chancellor of the Exchequer Alistair Darling about the plight of Presbyterian Mutual investors.
Mr Allister – speaking on the BBC Radio Ulster Talkback programme with David Dunseath -- said the scandal of the 10,000 investors in Presbyterian Mutual who are likely to lose millions was not acceptable. He said there had been a failure in Government officials here in Northern Ireland.
He explained, “To be treated as a Mutual the PMS had to satisfy DETI as to the authenticity of its status. Yet it was receiving deposits, the essential business of banks. So it ought to have been registered with the FSA and DETI should have realised this and insisted on such, instead of accepting its mutual status. In failing to do so DETI failed the investors and in consequence they are now in severe difficulty. This started under Direct Rule, but is up to DETI to now face up to its failure, from which flows an obligation on both Stormont and Westminster to put together a rescue package.”
The Governmental failure needed to be faced up by the Northern Ireland Executive and by London.
In response the Treasury Minister Ian Pearson has written to MEP Jim Allister saying “the Government is keen to ensure a successful resolution to this matter”.
He told Mr Allister: “The Government shares your concerns about the events at PMS and sympathises with the difficult situation faced by members”.
The Treasury Minister said their officials have been in contact with the relevant authorities in Northern Ireland.
But Mr Allister said the pressure has now increased on the Prime Minister to step in and protect Presbyterian Mutual investors.
“Mr Brown had acted at the weekend to save a Scottish building society in his own constituency, the Dunfermline Building Society so it was now time to act over Presbyterian Mutual”.
