PRIVATE EYE ARTICLE

A FAVOURITE excuse trotted out by council leaders in recent weeks, following the Icelandic fiasco, has been that they were given relatively good credit ratings, at least for short-term loans, until shortly before they failed.  How could councils such as Barnet (£27m), Kent(£50m) and Nottingham (£42m) have known that their taxpayers' money wasn't safe? Perhaps they should have taken a leaf out of tiny East Northamptonshire district councils's book.  ENDC had invested £4m in Iceland but withdrew it early last year after the council's financial advisers pointed out that it was risky.  The council's Conservative leader, Andy Mercer, said that after a "risk management assessment" the council had decided to reinvest the dosh elsewhere, albeit at a lower rate.  Perhaps Barnet's Cllr Freer could ask his party colleague for some tips.