Acting on the advice of the Bank and FSA, my right hon. Friend the Chancellor of the Exchequer last week took action to protect the retail depositors in three Icelandic banking operations in the UK: Icesave, a UK-based branch of Landsbanki; Heritable, a UK-based banking subsidiary of Landsbanki; and Kaupthing Singer and Friedlander, a UK-based banking subsidiary of Kaupthing Bank.

Using powers under the Banking (Special Provisions) Act 2008, retail deposits in Heritable and Kaupthing, Singer and Friedlander have been transferred to ING Direct. Savers' money is safe and secure. The Chancellor has also guaranteed retail deposits in Icesave in full. The Treasury and the Financial Services Compensation Scheme are working with the Icelandic authorities and their Deposit Insurance Scheme to ensure that depositors in Icesave are paid back as quickly as possible. The Bank of England has also provided a short-term secured loan of up to £100 million to the London branch of Landsbanki, to help ensure an orderly wind down and maximize the returns to UK creditors. The Government have also frozen the funds and financial assets held by Landsbanki. This is a precautionary measure to protect UK economic interests and we are continuing to work closely with the Icelandic authorities to ensure a fair process for UK creditors.

There are no strategic health authorities, primary care trusts or NHS trusts with any Exchequer funds—that is, taxpayers' money—residing in Icelandic banks.

There is one organisation, Hammersmith hospitals NHS Charities, which has £1.65 million of charitable funds deposited in the Icelandic bank—Kaupthing Singer and Friedlander. Hammersmith Hospitals NHS Trust has now merged with Imperial College NHS Trust, but the charity arm is still going through the merger process. The trust are working with their legal team and the Financial Services Compensation Scheme to ensure they protect these deposits.

In addition, there are two NHS foundation trusts with money deposited in Icelandic bank accounts.

The Christie Hospital NHS Foundation Trust released a statement on Friday 10 October confirming that they have a deposit of £7.5 million with the Icelandic bank, Kaupthing Singer and Friedlander—£1 million pounds of this is NHS money and £6.5 million is charity money. The Christie hospital have taken legal advice and are working closely with the Financial Services Authority to ensure that they protect their deposits.

Central and North West London NHS Foundation Trust also have a deposit of £1 million with the Icelandic bank, Kaupthing Singer and Friedlander. All of this deposit is NHS money and the trust are working with their legal team to ensure that they protect their deposits.

The Christie Hospital NHS Foundation Trust and Central and North West London NHS Foundation Trust have confirmed that that in neither case will any potential loss give rise to concerns as to their ability to continue to provide services.