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| Councils hit by Icelandic banks | Councils hit by Icelandic banks |
| (30 minutes later) | |
| More than £66m of public money from Welsh councils and police bodies is tied up in investments with Icelandic banks now in receivership. | More than £66m of public money from Welsh councils and police bodies is tied up in investments with Icelandic banks now in receivership. |
| Seven Welsh authorities and three police authorities have invested in Icelandic banks or their subsidiaries. | Seven Welsh authorities and three police authorities have invested in Icelandic banks or their subsidiaries. |
| Neath Port Talbot and Caerphilly councils have the largest amounts at £20m and £15m respectively. | Neath Port Talbot and Caerphilly councils have the largest amounts at £20m and £15m respectively. |
| Local authority leaders are calling for an urgent meeting with the Chancellor Alistair Darling. | Local authority leaders are calling for an urgent meeting with the Chancellor Alistair Darling. |
| The UK government has frozen all the British assets of Landsbanki. | The UK government has frozen all the British assets of Landsbanki. |
| It follows the decision by Iceland's government to take over the company, which ran the internet bank Icesave, leaving 300,000 UK residential customers unable to access their savings. | It follows the decision by Iceland's government to take over the company, which ran the internet bank Icesave, leaving 300,000 UK residential customers unable to access their savings. |
| COUNCILS AFFECTED Neath Port Talbot - £20mCaerphilly - £15mCeredigion - £5.5mPowys - £4mGwynedd - £4mFlintshire - £3.7mRhondda Cynon Taf - £3m Monmouthshire - £1.2mGwent Police Authority - £1mSouth Wales Police Authority - £7mDyfed-Powys Police Authority - £2m Source: BBC Wales Dragon's Eye | COUNCILS AFFECTED Neath Port Talbot - £20mCaerphilly - £15mCeredigion - £5.5mPowys - £4mGwynedd - £4mFlintshire - £3.7mRhondda Cynon Taf - £3m Monmouthshire - £1.2mGwent Police Authority - £1mSouth Wales Police Authority - £7mDyfed-Powys Police Authority - £2m Source: BBC Wales Dragon's Eye |
| Neath Port Talbot council has confirmed that they have a total of £20m invested in the Icelandic banking system. | Neath Port Talbot council has confirmed that they have a total of £20m invested in the Icelandic banking system. |
| The authority said they have £8m in two banks in Iceland and a further £12m in the UK subsidiaries of Icelandic banks. | The authority said they have £8m in two banks in Iceland and a further £12m in the UK subsidiaries of Icelandic banks. |
| The council's corporate director of finance Derek Davies said: "The council is concerned and we are carefully monitoring the situation. It is too early to say what the ultimate level of risk is with these investments." | |
| Caerphilly has £10m invested with Heritable Bank, a UK subsidiary of Landsbanki and £5m with Landsbanki. | Caerphilly has £10m invested with Heritable Bank, a UK subsidiary of Landsbanki and £5m with Landsbanki. |
| The council said it was deposited for a period of three months and the authority said it was looking at all avenues to recover the money. | The council said it was deposited for a period of three months and the authority said it was looking at all avenues to recover the money. |
| It said there would be no immediate effect on council services. | It said there would be no immediate effect on council services. |
| Ceredigion council has £5.5m in Icelandic banks. | Ceredigion council has £5.5m in Icelandic banks. |
| Powys council and Gwynedd council have £4m each; Flintshire council has confirmed that it had banked £3.7m with the institutions, while Rhondda Cynon Taf had deposited £3m. | Powys council and Gwynedd council have £4m each; Flintshire council has confirmed that it had banked £3.7m with the institutions, while Rhondda Cynon Taf had deposited £3m. |
| It is also known that Monmouthshire council had accounts worth £1.2m and Caerphilly council has an undisclosed amount invested. | It is also known that Monmouthshire council had accounts worth £1.2m and Caerphilly council has an undisclosed amount invested. |
| The Gwent Police Authority has £1m invested and the neighbouring South Wales Police Authority £7m. Dyfed-Powys Police Authority, meanwhile, has £2m deposited in UK subsidiaries of Icelandic banks. | The Gwent Police Authority has £1m invested and the neighbouring South Wales Police Authority £7m. Dyfed-Powys Police Authority, meanwhile, has £2m deposited in UK subsidiaries of Icelandic banks. |
| South Wales Police Authority said its investment was split between £3m in Landsbanki and £4m in its subsidiary Heritable. | South Wales Police Authority said its investment was split between £3m in Landsbanki and £4m in its subsidiary Heritable. |
| A spokesperson said the money was "by no means is this money lost" and they pledged front line services will not be affected. | A spokesperson said the money was "by no means is this money lost" and they pledged front line services will not be affected. |
| Meeting | Meeting |
| A spokesman for the Labour Plaid Cymru coalition Welsh Assembly Government said: "Welsh Ministers are aware of the issue. | A spokesman for the Labour Plaid Cymru coalition Welsh Assembly Government said: "Welsh Ministers are aware of the issue. |
| "Investment policy is a matter for individual local authorities and fiscal issues arising from the credit crunch are matters for the UK Government. | "Investment policy is a matter for individual local authorities and fiscal issues arising from the credit crunch are matters for the UK Government. |
| "We understand that the Welsh Local Government Association has requested a meeting with the Chancellor to discuss the issue. We will await the outcome of discussions at a UK level." | "We understand that the Welsh Local Government Association has requested a meeting with the Chancellor to discuss the issue. We will await the outcome of discussions at a UK level." |
| The opposition local government spokesman, Conservative AM Nick Ramsay said: "It is all in our interests to ensure council finances and council services are not put at risk." | The opposition local government spokesman, Conservative AM Nick Ramsay said: "It is all in our interests to ensure council finances and council services are not put at risk." |
| The Welsh Liberal Democrats called on the UK government to guarantee local authority funds held by Icelandic banks. | The Welsh Liberal Democrats called on the UK government to guarantee local authority funds held by Icelandic banks. |
| Jenny Randerson, AM, Welsh Liberal Democrat spokesperson for local government said: "Having bailed out the banks, and rightly agreed to to protect individual British savers, the precedent has been set by the chancellor, so why should local government be any different." | Jenny Randerson, AM, Welsh Liberal Democrat spokesperson for local government said: "Having bailed out the banks, and rightly agreed to to protect individual British savers, the precedent has been set by the chancellor, so why should local government be any different." |
| A number of English councils also have money invested. | A number of English councils also have money invested. |
| Monitoring situation | Monitoring situation |
| A spokesperson for the Welsh Local Government Association (WLGA) said the situation was being "carefully monitored". | A spokesperson for the Welsh Local Government Association (WLGA) said the situation was being "carefully monitored". |
| In a statement, the WLGA added that councils are "clearly concerned at the security of their investments but it is too early to say whether they are at risk". | In a statement, the WLGA added that councils are "clearly concerned at the security of their investments but it is too early to say whether they are at risk". |
| It added: "The local government associations around the UK have now made direct approaches to the Treasury to get the Chancellor to provide the necessary cover for public sector investments which have been undertaken in accord with normal practice." | It added: "The local government associations around the UK have now made direct approaches to the Treasury to get the Chancellor to provide the necessary cover for public sector investments which have been undertaken in accord with normal practice." |
| The Local Government Association, which represents all 400 councils in England and Wales, said it did not expect significant financial problems for local authorities in the short term. | The Local Government Association, which represents all 400 councils in England and Wales, said it did not expect significant financial problems for local authorities in the short term. |
| One senior Welsh council official, who did not want to be identified, told Dragon's Eye: "It's going to be a long time to work out the ramifications of this - in the meantime, it is very worrying." | One senior Welsh council official, who did not want to be identified, told Dragon's Eye: "It's going to be a long time to work out the ramifications of this - in the meantime, it is very worrying." |
| Prime Minister Gordon Brown has condemned Iceland's failure to guarantee British savers' deposits in the country's banks. | Prime Minister Gordon Brown has condemned Iceland's failure to guarantee British savers' deposits in the country's banks. |
| Chancellor Alistair Darling has said that he will ensure all UK savers with accounts with the closed internet bank Icesave will get all of their money back. | Chancellor Alistair Darling has said that he will ensure all UK savers with accounts with the closed internet bank Icesave will get all of their money back. |
| But the position with corporate investors, such as councils, is less clear. | But the position with corporate investors, such as councils, is less clear. |
| The matter is likely to be the subject of intense discussion at the annual meeting of the WLGA, which begins in Llandudno on Thursday. | The matter is likely to be the subject of intense discussion at the annual meeting of the WLGA, which begins in Llandudno on Thursday. |
| Fourteen councils say they have no investments - Anglesey, Blaenau Gwent, Carmarthenshire, Conwy, Denbighshire, Pembrokeshire, Newport, Swansea, Torfaen, Merthyr Tydfil, Wrexham, Cardiff, Bridgend and Vale of Glamorgan. | Fourteen councils say they have no investments - Anglesey, Blaenau Gwent, Carmarthenshire, Conwy, Denbighshire, Pembrokeshire, Newport, Swansea, Torfaen, Merthyr Tydfil, Wrexham, Cardiff, Bridgend and Vale of Glamorgan. |
| Dragon's Eye begins its new series on Thursday 9 October on BBC 2W at 2100 BST and on BBC One Wales at 2235 BST | Dragon's Eye begins its new series on Thursday 9 October on BBC 2W at 2100 BST and on BBC One Wales at 2235 BST |