UK government to rescue PMS savers

THE UK government is to fund a £200 million rescue operation to help thousands of people whose life savings are in limbo following the collapse of the Presbyterian Mutual Society (PMS)in Northern Ireland nearly two years ago.

George Osborne, chancellor of the exchequer, yesterday confirmed it will provide the North’s Executive with £25 million in cash and a £175 million loan to help those who were savers in the PMS.

Mr Osborne told the House of Commons: “In Northern Ireland, the collapse of the Presbyterian Mutual Society has caused great hardship. And people have been left without their money for too long.”

The exact details of the rescue scheme have yet to be finalised but former members of the PMS have warmly welcomed the development. Dr Stafford Carson who is leading the Presbyterian Church’s response to the collapse of the society said it will be “a great relief to those involved”.

“Until further details are announced, it is impossible to know what the exact outcome will be for members of the society and how much of their money will be returned to them.

“The church remains particularly concerned for the smaller savers who have been most disadvantaged by the all the implications of administration,” Dr Carson added. He hoped the announcement would bring “clarity” to the discussions of the ministerial working group set up to deal with the PMS problem.

“We urge them now to work without delay towards a just and fair resolution for everyone involved and bring to an end the anxiety and worry suffered by so many,” Dr Carson said.

But Arthur Boyd, the administrator of the PMS, which collapsed in November 2008, said there were still some issues that needed to be dealt with. Although he very much “welcomed” the announcement that funding was being made available Mr Boyd said there were “complex matters to be resolved”.

These revolve around how the funding will be applied. Mr Boyd said: “In due course I would plan to make a proposal to members/creditors for them to vote upon. The specifics of that proposal cannot be formulated until I have further details.”