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Tynwald approves raising £50,000 savings guarantee
SAVINGS of up to £50,000 will be covered by an updated Isle of Man depositors' compensation scheme.
The move was unanimously approved at an emergency Tynwald sitting this morning (Thursday) following a three hour debate.
Members were asked to approve with immediate effect the enhanced deposit protection scheme announced this week by Treasury Minister Allan Bell. The scheme increases the protection level for local and international individual depositors to 50,000.
Hear what others have to say and leave your comments at YourShout: Financial crisis and IoM
Mr Bell said while there had not been the normal consultative process in drawing up the new scheme, talks with all parties including banks were continuing and if necessary there could be further amendments to the scheme.
He insisted that the Island's banking system was robust but pointed out that a depositors' compensation scheme had been in place for more than 27 years and that an up to date scheme was needed.
Mr Bell said: 'We have never in history experienced a period of turmoil and concern of this nature that we have at the moment on such a world wide basis. It's unrealistic to think that the Isle of Man will not be affected by it.'
John Houghton (Douglas North) said members were being contacted on an almost hourly basis by constituents and called for an urgent presentation from the Financial Supervision Commission.
Concern was also raised about members of the public being confused about what the scheme will actually do and how long it would take for compensation to be paid.
David Cannan (Michael) urged Mr Bell to bring an amendment to cover trust funds for children and charitable donations.
During the debate Clare Christian MLC announced she had a personal interest in the matter as she had an account with Kaupthing Singer & Friedlander which was wound up leaving hundreds of customers worrying if they would lose savings and bank staff, thought to number around 30 to 40.
Chief Minister Tony Brown said: 'What is important is that we keep a level head, that we are calm about it, but also that we recongise and we are seriously concerned about the situation as it affects the Isle of Man as it affects the rest of the world.'
He added: 'The Council of Ministers do recognise that there are many, many people in our constituencies throughout the Island and further ashore who are concerned about the situation and are particularly concerned about their personal savings.'
President of Tynwald Noel Cringle said: 'The decision to call this meeting of Tynwald was not taken lightly. I am very conscious that in calling this sitting at such short notice there may be members, for one reason or another who would be unable to attend.'
Six MHKs and three MLCs were not present at the sitting.
It was the first emergency Tynwald debate since the Radio Caroline crisis of 1967.
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Hear what others have to say and leave your comments at YourShout: Financial crisis and IoM
>> Manx Government increases savings protection to 50,000
7 October 2008
>> Savings guarantee plan put forward by MHKs
6 October 2008
>> Credit crunch: Manx depositors scheme under review
1 October 2008
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As Santander now owns Bradford & Bingley who pays the guarantee's Spain or IOM ?
ANON
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Weather for Isle of Man
Wednesday 08 February 2012
Today
Sunny spells
Temperature: 3 C to 4 C
Wind Speed: 23 mph
Wind direction: South
Tomorrow
Light rain
Temperature: 7 C to 8 C
Wind Speed: 20 mph
Wind direction: South west
