Yorkshire Credit Union loan inquiry row

Published in News

YORK’S council leader has accused political opponents of shying away from a full investigation into North Yorkshire Credit Union’s collapse.

The organisation, previously York Credit Union, folded last year and a £100,000 loan agreed by City of York Council in 2009 was written off. At the time the loan was discussed, council officials warned city leaders it was “extremely high risk”.

Coun James Alexander, who leads the Labour-run council, said in a letter to Liberal Democrat group leader Coun Carol Runciman that a “full scrutiny review” of the credit union’s failure should be held and examine the actions of the Lib Dems, who led the authority when the loan was made.

Coun Runciman and Conservative councillor Paul Healey have asked for a review of how the council makes loans and grants to external organisations. Coun Alexander claimed this meant the Lib Dems were reneging on previous calls for a full public inquiry into the credit union.

Coun Runciman said a scrutiny committee had decided the review “could only realistically focus on the way council loans are monitored in the future” and Labour members of the committee supported this, adding: “Coun Alexander should listen to them as they seem to understand better the nature of the committee and what it can and cannot do.”

Comments (3)

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12:21pm Tue 5 Feb 13

THE_JABINATOR says...

If York City Council have wrote off a £100,000 loan then who is paying for that? The taxpayer? What a disgrace. The people who allowed this loan to go throughat York City Council should be put in prison.
If York City Council have wrote off a £100,000 loan then who is paying for that? The taxpayer? What a disgrace. The people who allowed this loan to go throughat York City Council should be put in prison. THE_JABINATOR
  • Score: 0

5:17pm Tue 5 Feb 13

bob the builder says...

.. I look forward to another non scrutiny when the current loan to South Yorkshire fails to be repaid .. that Labour agreed. It's all smoke and mirrors, politicians of all parties don't want the public to know what deals they are making, have made and personally profit from (money doesn't have to change hands to benefit from a deal).
.. I look forward to another non scrutiny when the current loan to South Yorkshire fails to be repaid .. that Labour agreed. It's all smoke and mirrors, politicians of all parties don't want the public to know what deals they are making, have made and personally profit from (money doesn't have to change hands to benefit from a deal). bob the builder
  • Score: 0

9:03pm Tue 5 Feb 13

Micklegate says...

bob the builder wrote:
.. I look forward to another non scrutiny when the current loan to South Yorkshire fails to be repaid .. that Labour agreed. It's all smoke and mirrors, politicians of all parties don't want the public to know what deals they are making, have made and personally profit from (money doesn't have to change hands to benefit from a deal).
Labour has found a great way to remove the default risk, this time it's not even a loan they are simply giving the money away!

You're wrong to tar all parties the same, the Conservatives and Lib Dems have opposed many of Labour's spending plans and borrowing increases. They don't have all the answers but would be much better than Labour.
[quote][p][bold]bob the builder[/bold] wrote: .. I look forward to another non scrutiny when the current loan to South Yorkshire fails to be repaid .. that Labour agreed. It's all smoke and mirrors, politicians of all parties don't want the public to know what deals they are making, have made and personally profit from (money doesn't have to change hands to benefit from a deal).[/p][/quote]Labour has found a great way to remove the default risk, this time it's not even a loan they are simply giving the money away! You're wrong to tar all parties the same, the Conservatives and Lib Dems have opposed many of Labour's spending plans and borrowing increases. They don't have all the answers but would be much better than Labour. Micklegate
  • Score: 0

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