Powys' frozen £4 million – “Financial clarification within the next fortnight”, says First Minister

FIRST Minister, Rhodri Morgan, has said he expects news about the Council's frozen money in the next fortnight.

The First Minister was responding to a question from local Labour Assembly Member Joyce Watson.

Joyce Watson AM said:

“Powys Council has more than £6 million in unallocated reserves and £4 million still frozen in Icelandic banks, money that is much needed in light of the recent 1.5 per cent settlement

“Could you update the Chamber on the latest negotiations to secure that money for individual depositors, businesses, councils and other public bodies?”

Mrs Watson continued:

“It should be remembered that, over the past 10 years, Labour has increased funding for councils in Wales by more than 52 per cent. However, that does not make the tough budgetary decisions that councils have to make this year and next year any easier, which is why the 1.5 per cent floor is so important – it gives councils like Powys a guarantee that they can plan with and budget towards.”

First Minister RHODRI MORGAN responded, saying:

“We expect to get financial clarification within the next fortnight, roughly by mid November, from the administrative receivers of the two relevant Icelandic banks that have operations in the UK, in which Welsh local authorities, including Powys, have put some of their investments, which are now frozen.

“We trust that the picture will be much clearer in a fortnight’s time.”

-