Council money safe

Councillor Greg Couzens, Rochdale Council Cabinet Member for Finance, sought to ease anxiety over the collapse of Icelandic banks and the precarious state of British banks and the potential repercussions for Rochdale Council. Councillor Couzens confirmed to the Council Chamber that the Council did not have any money invested with Icelandic banks.

In response to a specific question airing concern over the PFI schemes the council has in place, Councillor Couzens said: "Obviously at this time the banks are significantly controlling their lending both to individuals and institutions. However, they are also looking for more secure homes for their monies. In PFI schemes the private contractor undertakes the borrowing with the Council being contracted to pay for the services provided. It is therefore a more secure investment for the banks.

"At this stage I cannot give a categorical assurance that PFI schemes will be unaffected. We have seen unprecedented circumstances recently, which we would not have imagined could happen. However, it is my view that whilst banks will be more cautious about who they lend to, which may lead to delays in securing new PFI schemes, we are in a more secure environment than many.