Frank Little

At the Welsh Liberal Democrat autumn conference held in Clydach last weekend, the following emergency motion was carried:

Local Authorities and the Icelandic Financial Crisis  

Conference Notes

1. The Global Financial Downturn, dramatic fall in stock exchanges and the collapse of the Icelandic financial system.  

2. That nine local authorities and three police authorities in Wales have over £60m in frozenIcelandic bank accounts.   

3. That under the FSC scheme the first £50k of savings is protected per person, per institution.   

4. That the UK Government and WAG have stopped short of announcing protection for thoseLocal Authorities whose money is currently in frozen Icelandic Bank accounts  

5. That responsibility for local government is devolved to WAG.   

Conference believes  

1. That WAG will need to work with the UK treasury to find a joint resolution to the situation as quickly as possible.   
2. That Council tax payers should not pay the financial price for Icelandic banks freezing accounts.
3. That guarantees from WAG need to be given that frontline services will not be cut as a result of assets in Iceland being frozen.  

Conference calls for

1. WAG [the Welsh Assembly Government]  to provide appropriate transitional relief to local authorities who have lost money or interest payments in Iceland.