Welcome climb-down by Stormont Executive on PMS issue
15 February 2011
Statement by TUV Leader Jim Allister:-
I want to congratulate the PMS Lobby Group on securing an important concession from the Stormont Executive on an significant aspect of the PMS package.
Some weeks ago it emerged that to their shame the Executive intended to insist on the £25m, which they are putting in to the Mutual Access Fund, being repaid out of the realised assets of PMS before outstanding money then still due to savers was paid. Naturally, such a grasping attitude was condemned by me (http://www.jimallister.org/default.asp?blogID=2150) and others and PMS savers lobbied strongly against the stance.
Yesterday in an about-turn the Finance Minister retreated when he told the Assembly, The £175 million will have to be repaid first, because it is a loan that the Executive have taken out. Once the property starts to be sold, the savers will get their money, and the repayment to the mutual access fund will come after that.
Previously he had told the Assembly:
After repaying the £175m loan any surplus at the end of the ten year loan workout period would firstly be used to repay the cost of the Access Fund. After this any remaining surplus would be available for distribution to PMS creditors and members.
Senior DFP official, Bill Pauley had maintained the same to the DFP Committee on 19 January 2011.
I, therefore, welcome this climb-down by the Executive, so far as it goes, but still question why the Executive's £25m is only a loan, while the Tresury's £25m is a gift.
This is an important and necessary concession which, I have no doubt, is the result of strong pressure from those lobbying on behalf of PMS savers.
