As the Treasury Select Committee held a hearing at Stormont today, Leslie Cree MLA, Ulster Unionist Party Spokesperson for Enterprise Trade and Investment, has called on the Labour Government’s working group to take immediate steps to help savers in the Presbyterian Mutual Society.

 

In a statement Mr. Cree stated:

 

“The Presbyterian Mutual Society went into administration in November 2008. Over a year later, despite the creation of a Government working group, nothing has been done to help those vulnerable savers whose futures are literally bound up with the prospects of the PMS.

 

“The majority of the people with savings in the PMS are small depositors. They are relying on those savings for their future and in many cases their retirement. Over a year has gone by without any meaningful decisions or action being taken.

 

“Many local politicians have promised much, but nothing has been delivered, Arthur Boyd the administrator, has recently made a request for his administration period to be extended for five years.

 

“Five years will literally be too late for some people.

 

The Labour Government spent billions of pounds of taxpayer’s money to prop up the banks; institutions which in many cases acted irresponsibly and have returned to an unacceptable bonus culture. Guarantees were provided to UK customers of failing Icelandic Banks by both the Financial Services Agency and HM Treasury under similar circumstances in October last year. The Dunfermline Building Society was a further precedent.

 

One way of solving the problem would be for the PMS assets to be moved into an enhancement fund in one of the local banks. Assets would be properly managed and should recover in time. Guarantees would be necessary from the UK Government and possibly the Executive.

 

“Action needs to be taken immediately to give the vulnerable and innocent savers in the PMS the protection they deserve from the Government of the United Kingdom”.