Taxpayers money should not be used to prop up Essex bank (Saffron Walden Constituency Liberal Democrats)

Saffron Walden Constituency Liberal Democrats <info@saffronwaldenlibdems.org.uk>

Taxpayers money should not be used to prop up Essex bank

December 2, 2008 7:25 AM

Conservatives at Essex County Council should not put at risk council taxpayer's money if their plan to create a Bank of Essex is realised.

Speaking about the plans, Cllr Tom Smith-Hughes, Liberal Democrats group leader said: "We have been asking the council to use its considerable reserve funds to help keep the economy moving, with a range of measures to help people in Essex during the financial crisis. However, we need clarification from the Conservative administration regarding their proposal for setting up a bank. With the government having had to bail out the banking sector with billions of pounds of taxpayer's money, we do not wish to see hard-earned council tax payer's money put at risk and so not able to be used to provide public services.

"Lord Hanningfield has stated that the proposed bank could provide 'high-risk, small business loans'. At a time when local people are tightening their belts to pay their own bills and many facing the real prospect of losing their jobs, council taxpayer's money should not be used to lend to high risk businesses. We've said it before and we'll say it again; it is the job of the council's administration to provide the services that our residents want and need, instead of proposing vague projects that could be seen as designed to swell the Conservative group's press cuttings file."