Kaupthing Singer and Friedlander Isle of Man

Oral Answers to Questions — Treasury – in the House of Commons at 2:30 pm on 14th July 2009.

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Photo of Barry Sheerman Barry Sheerman Chair, Children, Schools and Families Committee 2:30 pm, 14th July 2009

If he will hold discussions with the Isle of Man Government on reimbursement of the legal costs of UK depositors of Kaupthing Singer and Friedlander Isle of Man bank arising from the scheme of arrangement against the bank administered by the Isle of Man authorities.

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Photo of Ian Pearson Ian Pearson Economic Secretary, HM Treasury

Kaupthing Singer and Friedlander Isle of Man is a subsidiary not of KSF in the UK, but of the Icelandic parent company. Oversight of KSF Isle of Man is the responsibility of the Isle of Man's Financial Supervision Commission. Arrangements for depositors in KSF Isle of Man, including for the reimbursement of legal costs, are a matter for Manx insolvency law and the Isle of Man Government.

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Photo of Barry Sheerman Barry Sheerman Chair, Children, Schools and Families Committee

Is not my hon. Friend passing the buck? People in my constituency and throughout the United Kingdom invested in the Derbyshire building society, thinking that their savings were safe. They have lost most of their savings and they are still waiting for any recompense. The legal costs will haemorrhage away what hope they have of ever getting anything. They are UK citizens who have lost their life savings, and I believe that we should do something to help them.

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Photo of Ian Pearson Ian Pearson Economic Secretary, HM Treasury

It is my understanding that investors in the Derbyshire were clearly informed when their savings were transferred to KSF Isle of Man. It is a fact that KSF Isle of Man is regulated by the Manx authorities, in the same way as other jurisdictions have their own regulators. It is not possible for the UK Government to intervene in those circumstances. I am more than happy to discuss the issue with my hon. Friend in more detail, if he wishes. I recognise the concern of savers in his constituency and others.

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T

Pearson knows full well that this was caused by the UK Government. 1. The UK Government forced thousands of British citizens - overseas workers, service men/women, charity workers and pensioners - to bank offshore when their 2007 'Know Your Customer' rules meant when changing address to overseas the only way...

Submitted by Terry Kale Continue reading (and 1 more annotation)

Photo of Gregory Campbell Gregory Campbell Shadow Minister (Transport), Shadow Minister (Work and Pensions)

The Government moved early to protect savers with Northern Rock and other large financial institutions in the United Kingdom. Do not savers with smaller institutions, such as the Derbyshire and the Presbyterian mutual society in Northern Ireland, deserve the same protection?

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Photo of Ian Pearson Ian Pearson Economic Secretary, HM Treasury

As the hon. Gentleman knows, following discussions with some of the party leaders in the Northern Ireland Administration, the Government have announced that we will conduct a review of the Presbyterian mutual society and the situation facing savers. I understand that that review has just started and is due to report in the autumn. The hon. Gentleman will also know about the general issue of regulating industrial and provident societies and credit unions in Northern Ireland. A report was published on that matter on 8 July, to which I refer him.

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T

Shame on the UK Government. They prefer to play politics rather than correct messes they caused in the first place.

This is the first anniversary of the financial genocide committed by Her Majesty's Government.

www.theukgovernment.com

Submitted by Terry Kale