Committee hearing underscores how poorly PMS savers have been served
19 January 2011
Statement by TUV Leader Jim Allister:-
“This morning’s discussion on the PMS in the DFP Committee was profoundly disappointing and, frankly, displayed a lack of knowledge and commitment by MLAs which was most discouraging.
“One of the most striking aspects was that though we are well into the third year of the PMS crisis very little has in fact been done to bring a solution much closer. Still the talk is of all the details that yet have to be worked out, the hurdles that exist, all of which begs the question just what have Stormont ministers been doing since 2008 if so much remains to be done.
“Certain salient and uncomfortable facts emerged from today’s evidence from Mr Pauley of DFP:
1. Contrary to earlier promises there is no prospect of an early pay-out, given legislation has yet to be drafted, never mind got through the Assembly, which dissolves on 22 March, and multiple other hurdles have yet to be crossed. Having ruled out any pay-out in the first quarter of the next financial year, all Mr Pauley could say was he hoped for progress in the tax year 2011/12. So this time next year savers could still be waiting!
2. It is clear from the negative, even hostile, contribution of Mitchell McLaughlin that there is no firm buy-in by Sinn Fein to the suggested rescue package, foretelling further delay and squabble.
3. The small savers have been sold short. Alarmingly, Mr Pauley conceded that the Mutual Access Fund will not cover all that the savers are owed and, shamefully, for their balance monies they will then take their place at the back of the queue to pick up whatever crumbs are left when the government and the creditors have been repaid in full after disposal of the assets. This is scandalous because it was DETI’s acquiesance in the regulatory gap which allowed the PMS crisis to develop, meaning there is departmental responsibility which is not being met by mere loans which have repayment priority over the losses of the savers. Tragically, there wasn’t a single MLA who had the gumption or application to make such a basic point, meaning the Executive is getting away with its false propaganda that it is blameless and, therefore, entitled to jump the queue ahead of savers to demand repayment of their loans. They are not blameless, but culpable, as the Treasury Select Committee report made abundantly clear.
4. There is an unresolved contradiction between what the Treasury and Stormont are saying about the Treasury’s £25m. Treasury Minister, Lord Sassoon has been clear in a House of Lords reply that it is a donation, but today DFP insisted it was a mere interest free loan. Who is right needs to be clarified urgently.
5. There are MLAs in whom PMS savers have resided hope and trust who appear to have no interest or grasp of the issues. The rambling contributions, alas, especially from the single UUP and DUP MLAs who bothered to contribute, were vacuous, even embarrassing, with no one even attempting to take on or answer the Sinn Fein onslaught against the proposed package. Huge issues of key importance were ignored: why should the Executive’s contribution only be a loan in view of DETI’s negligence over regulation, why is EU State Aid approval even necessary for something described by Mr Pauley as a loan on terms akin to commercial loans, when EU policy specifically excludes the need for approval for such, and why have over 2 years been wasted with the details of the package yet to be worked out, never mind got into legislation?
“Today’s hearing drains my confidence that Stormont is at all on top of this subject or capable of producing the just and equitable settlement to which PMS are entitled.”
