York and North Yorkshire Credit Union Arrest – Labour decision to be scrutinised

The media are reporting that a former employee has been arrested following investigations into fraud at the North Yorkshire Credit Union. The Union collapsed last week.

Separately, a decision by the Labour Cabinet has been “called in” for scrutiny. They were proposing to grant £50,000 (plus help in kind) to another Credit Union that wishes to open a branch in York.

The proposal has been called in to permit full consideration of the reasons behind the North Yorkshire Credit Union collapse. http://tinyurl.com/CU-call-in

The York Council stands to lose up to £100,000 of the loan it made to the York Credit Union in January 2009.

The minutes of meetings around that time reveal that Labour had proposed that £150,000 should be loaned on a “unsecured” sub ordinate basis.

This proposal was rejected by the then LibDem controlled Executive and the York Council unanimously agreed on 22nd Jan 2009 to loan £52,000 (the maximum permitted) as a “preferential loan” with the remainder classified as a “sub-ordinate” loan (which has less protection in the event of a financial failure).

The Council also agreed that “That Council maintain a check on the financial position of the York Credit Union by such means as are acceptable to the Director of Resources”

It is the way that the latter condition has been exercised over the last 18 months – during which time the Credit union slipped into financial difficulties – that should form part of the scrutiny review.

Details of the historic decisions made can be found on the Councils web site

Executive meeting 23rd Dec 2008 http://tinyurl.com/Exec-23rd-Dec-08

Labour alternative proposals 23rd Dec 2008 http://tinyurl.com/Lab-23rd-Dec-08

Council minutes 22nd Jan 2009 http://tinyurl.com/Council-22nd-Jan-09

Confusion over salt bins increases – call to fill bins as panto grant collapses

Kingsthorpe bin has damaged lid

Labour Councillors in Westfield caused a public outcry earlier in the year when they agreed to grant £800 for the the purchase of pantomime constumes. Residents in a postal ballot had given the scheme the thumbs down preferring that the money be spent on basic services such as security patrols.

Now the organisation intending to put on the pantomime has withdrawn the request for the grant.

Damaged salt bin Cornlands Road

This means that the money could be transferred to fund the filling of the salt bins which the Council has abandoned in the ward.

However many of the bins – which have only the remains of last years salt in them – are in a poor condition. Promised repairs have not materialised and many are choked with rubbish and congealed salt.

We are entering the period when ice can become a menace. The Council should act promptly.