No Shepway Council deposits in Icelandic Banks but impact on pensions unknown

10.46.57am UTC (GMT +0000) Sat 11th Oct 2008

In answer to questions from Lib Dem Councillor Tim Prater, Shepway Council have confirmed that, although they have no deposits in Icelandic banks, the potential impact on pension funds currently remains unknown. Shepway's pension fund is administered by Kent County Council, who have said that around one third of the KCC deposits that have been lost relate to the pension fund - around £18 million.

The response from Shepway on behalf of Finance Director Kathryn Beldon added:

"The overall impact this has had on the pension fund is unknown. However, KCC have stated that this crash has had no impact on their ability to meet their immediate pension liabilities."

Cheriton Councillor Tim Prater commented:

"Clearly, its good news Shepway have no deposits in Icelandic banks, unlike Kent County Council who seem to have a staggering £50 million at risk, more than any other Council in the country.

"The news on pension funds is worrying, and clearly we need the earliest possible news on what impact there will be on Shepway, and what that impact will actually mean for the pensions of Shepway staff and Council Tax payers.

"I hope Shepway, in line with other Councils, is taking a hard look at all investments at the moment to ensure they remain secure: clearly there is a balance between return on the investment and security, but given the current financial market turmoil, it's time to go for security first."