Ministers meet with Treasury Chief Secretary to discuss Presbyterian Mutal Society

Finance Minister Nigel Dodds and Enterprise Minister Arlene Foster today met with Chief Secretary to the Treasury Yvette Cooper to discuss developments relating to the winding-up of the Presbyterian Mutual Society, (PMS).

Speaking after the meeting, Minister Dodds said: “This is the latest in a number of representations that I have made to the Chief Secretary on this issue. Today I impressed upon Ms Cooper the need to ensure early resolution of this situation and to bring comfort to members of the Presbyterian Mutual Society.”

The Chancellor announced in his November 2008 Pre-Budget Report that he was establishing a review of the legislative framework for Credit Unions and Industrial and Provident Societies in Northern Ireland.

Minister Dodds added: “My officials have been working closely with colleagues in the Department of Enterprise Trade and Investment and HM Treasury on this issue. There is a pressing need to bring greater clarity to the regulatory regime that applies in Northern Ireland. We need to ensure that all possible measures are in place to create confidence for members when making important financial decisions.”

Arlene Foster said: “The Northern Ireland Executive has taken all the action it can. It has legislated for the Presbyterian Mutual Society to enter into administration to allow depositors’ assets to be maximised.”

She continued: “In providing help to building societies like the Dunfermline and guaranteeing deposits for the Icelandic bank, Icesave, Her Majesty’s Government’s actions were designed to directly offset the potential effects on depositors. As UK tax payers, PMS members with deposits should be afforded the same treatment.

“It is now up to the UK Government to honour the Prime Minister’s commitment to do ‘whatever it takes’ to protect people’s savings and not let any UK depositor lose out. It is important that Northern Ireland depositors in the PMS are treated no less fairly than their counterparts whose deposits in the Icelandic banks, for example, are being fully protected.”

Notes to Editors:

Administrators were appointed in respect of the Presbyterian Mutual Society in November 2008.

Treasury officials are conducting a review of the legislative framework for credit unions and industrial and provident societies (IPSs) in NI. Originally anticipated to coincide with the Budget, the report has been delayed.

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