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Treasury response on PMS is likely soon
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 Informative Article Summary by Anny Redperz
THE Treasury is to make a formal response within a week to Stormont ministers about the Presbyterian Mutual Society, it is understood.
Sources indicate that letters will be sent to Ministers Arlene Foster and Nigel Dodds and also SDLP leader Mark Durkan, about the troubled PMS.
It is understood the communication will not offer any help to shareholders in distress about the current status of their investment. However, in his recent pre-Budget review, Chancellor Alastair Darling promised a full review of the regulation of credit unions and industrial and provident societies, which includes mutuals, in Northern Ireland.
“The review will take account of the importance of mutuals to the Northern Ireland financial sector, and draw on good practice in other countries,” said Mr Darling.
Enterprise Minister Arlene Foster has told the News Letter that she understood the possibility of a guarantee for PMS funds would necessarily be part of the review. However, she was careful not to offer false hope, saying the outcome could not be pre-empted.
A spokesman for the Treasury repeated the line that the PMS could not be covered by the Government’s financial services compensation scheme because it was legally not a bank and had not been paying subscriptions into the fund.
In October the Treasury announced it was bringing forward comprehensive measures “to ensure the stability of the financial system and to protect ordinary savers, depositors, businesses and borrowers” with banks.
Yesterday the News Letter asked if it was possible that a creative solution to the PMS problem might be found by the Treasury as part of the Chancellor’s review, in light of the major efforts ongoing elsewhere with the economy.
A Treasury spokesman could only respond that the terms of reference for the review had not even been drawn up yet. Yesterday the News Letter reported that the review would be launched either before Christmas or early in the new year.
SDLP leader Mark Durkan has become involved in the matter because of his involvement with credit unions, which come under the same legislation as the PMS.
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