With the current turmoil in global financial markets, over 100 UK local councils have deposited millions of pounds in the collapsed Icelandic banking system.

South Derbyshire is not one of these councils.

Says Cllr John Harrison, Chairman of South Derbyshire Finance and Management Committee, “South Derbyshire’s long-standing investment policy is restricted to depositing reserves with the major UK clearing banks, the government reserve account and other local councils. Deposits to building societies were restricted over a year ago when news of the “credit crunch” began to surface. This was to protect the Council from investing in institutions that may have been involved in the sub-prime mortgage crisis in America.”

Cllr Harrison continues, “Our deposits are generally made on a short-term basis, spread across several institutions and are readily available, mostly at a day’s notice. It is considered that this provides the best way of ensuring that the Council’s money is as safe and accessible as possible. South Derbyshire residents can be assured that we will continue to ensure that any Council money held on deposit remains as secure as possible.”