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This article is from 'bbc', was first published or seen on Sun Oct 12 00:12:10 UTC 2008 and has 5 versions.

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Councils seek Iceland cash pledge Sun Oct 12 00:30:49 UTC 2008	Councils seek Iceland cash pledge Sun Oct 12 03:30:49 UTC 2008
Council leaders are to hold talks with the Icelandic ambassador to seek assurances their investments with the country's failed banks will be repaid.	Council leaders are to hold talks with the Icelandic ambassador to seek assurances their investments with the country's failed banks will be repaid.
The Local Government Association will demand taxpayers' money should be a top priority when repayments are made.
It comes as talks continue between the Treasury and the Icelandic authorities in Reykjavik over frozen UK deposits held in the collapsed banks.
About 100 councils in England, Scotland and Wales have deposits worth £842.5m.	About 100 councils in England, Scotland and Wales have deposits worth £842.5m.
The Local Government Association (LGA), which represents councils in England and Wales, said the meeting with the Icelandic ambassador would take place next week.	There are fears some council workers may not be paid because payroll money is tied up in the collapsed banks.
It says that if it failed to win the assurances it seeks, it will take its case directly to the Icelandic government.	Talks are continuing between the Treasury and the Icelandic authorities in Reykjavik over frozen UK deposits held in the now nationalised banks.
The LGA said some 108 local authorities had deposited money in the Icelandic banks but it insisted they had not been "reckless" with taxpayers cash.	Council reserves
It has already met with the British government and won a promise that authorities facing severe short-term difficulties would receive assistance.	The BBC's local government correspondent John Andrew said that, while most of the money invested is longer term, some councils deposit payroll money to earn interest.
However the government has not extended the same degree of protection to councils that it has been guaranteed to individual UK savers.	Since Iceland was forced to nationalise its main banks, which fell victim to the global financial crisis, that money is currently out of reach.
The LGA is expected to hold more talks with the government next week.	"The councils affected want the government to tide them over by allowing them to keep the revenue from business rates, which they normally pass onto government first," said our correspondent.
Nationalisation	Unions are watching with concern and want to know how many workers could be affected.
Iceland has been forced to nationalise its main banks, which fell victim to the global financial crisis.	The Local Government Association (LGA) said all councils hold reserves and in the majority of cases there would be no impact on staff pay or services.
	The government has ruled out any large scale bail-out of councils, instead promising assistance to those facing severe short-term difficulties.
	Taxpayers' cash
	The LGA, which represents councils in England and Wales, said the meeting with the Icelandic ambassador would take place next week.
	It wants taxpayers' money to be a top priority when repayments are made and says if it fails to win assurances from the ambassador, it will take its case directly to the Icelandic government.
	The LGA said some 108 local authorities had deposited money in the Icelandic banks but it insisted they had not been "reckless" with taxpayers' cash.
	However the Icelandic government has not extended the same degree of protection to councils that it has been guaranteed to individual UK savers.
	The LGA is also expected to hold more talks with the British government next week.
In addition to local councils, other UK public bodies, companies and charities had deposits with the failed banks.	In addition to local councils, other UK public bodies, companies and charities had deposits with the failed banks.
All UK private accounts affected by the crisis will be protected.	All UK private accounts affected by the crisis will be protected.
A Treasury delegation, which includes officials from the Bank of England and the Financial Services Authority, is in Reykjavik trying to establish a claims procedure for British depositors to get their money back as soon as possible.	A Treasury delegation, which includes officials from the Bank of England and the Financial Services Authority, is in Reykjavik trying to establish a claims procedure for British depositors to get their money back as soon as possible.
The talks are expected to last all weekend and the early signs are that significant progress has been made.	The talks are expected to last all weekend and the early signs are that significant progress has been made.
Chancellor Alistair Darling said he would unveil more details about the UK's bank rescue plan next week.
"What we're doing over the weekend is looking at specifics, how do we implement it and we'll be making an announcement at the beginning of the week," he said.

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