Spratt comments on Mutual Society announcement

DUP Assembly Member for South Belfast, Jimmy Spratt has responded to the majority decision by members of the Presbyterian Mutual Society to wind the society down in an orderly fashion under the direction of the Administrator. Mr. Spratt called upon the Treasury to now intervene in order to guarantee the savings of mutual society members.  Jimmy Spratt MLA said:

 

“The prompt action of the DETI Minister has enabled the Mutual Society to get to this point. Rather than facing the immediate collapse of the PMS and forced sales of all the assets, the members have voted to give the Administrator the power to wind the society down in an orderly fashion over a reasonable period of time. 

 

The steps that have been taken by the Executive to help PMS investors have been welcome and are designed to help people in a real and meaningful way. Everything that can be done at a localised, devolved level is being done. The focus now must move to HM Treasury.

 

The Presbyterian Mutual Society was brought to the brink of collapse as a direct consequence of the decisions taken by the Treasury. When the government stepped in to guarantee the savings of Financial Services Authority regulated institutions, they forced a run on the Society. Given that government action played a critical role in provoking panic withdrawals from the PMS, I believe that the Treasury now has a duty to assist those who have been so adversely affected by their actions. I call upon the Treasury to intervene and guarantee the savings of Mutual Society customers in the same way as they have those who saved in other FSA-regulated institutions. 

 

What we are talking about here and what we are requesting is targeted intervention for some of the most vulnerable people in our society like the many elderly people who put their life savings into the PMS and now stand to lose a big chunk of what they had put by for their old age. Government has a moral responsibility to act, given the role they played in creating their predicament.”