Earlier this week the Rev. Dr. Stafford Carson, Moderator of the General Assembly of the Presbyterian Church in Ireland, issued the call for a special meeting of the Assembly to consider the plan recently proposed by the Northern Ireland Government. The meeting is to be held on Tuesday 13 April at 2:00 PM, the first date possible with the requisite 14 day advance notice of the meeting.
The press release says:
The business of the Special Assembly, says the letter, is “to consider the present situation for savers in the Presbyterian Mutual Society andto respond to a recent initiative of the Northern Ireland Executive.”
“On Monday the First Minister and deputy First Minister announced that they had formulated proposals to resolve the PMS crisis which they intended to submit to both the Prime Minister and Treasury,” said the Moderator. “The Church recognises the substantial financial commitment of both the Treasury and the Northern Ireland Executive in this process and appreciates all that has been done by Executive Ministers, local politicians and their officials to reach this point.”
“We understand that part of these proposals will involve a financial contribution from the Presbyterian Church. In order to expedite the process we have called this special meeting of the General Assembly,whose decision would be necessary to raise any funds”
The press release says that the report and proposed motions are expected to be mailed out to commissioners next week. This is only the third special meeting of an Assembly in the last 34 years.
Last Monday, the day before the notice of call was issued, the Rev. Carson issued a statement about the possible settlement:
We welcome the announcement from the First Minister and deputy First Minister that they will be meeting with the Prime Minister Gordon Brown to press for a resolution of the PMS crisis.
It’s encouraging to know that a solution may be possible but we are disappointed that everyone’s preferred option of a commercial solution does not now seem possible. From our perspective that was the only solution that would deliver 100 pence in the pound to all savers.
However, if the Northern Ireland Executive, in consultation with the Treasury has been able to devise a scheme that restores 100 percent of all savings then that will be an excellent outcome.
We have not seen details of the proposals and at this stage we need clarity. We have sought written information on the details of this package and await a response.
The details of the government proposal are not yet know but a Belfast News Letter article says “It is believed that First Minister Peter Robinson and Deputy First Minister Martin McGuinness are set to meet Prime Minister Gordon Brown imminently to discuss the deal.” However, a Belfast Telegraph article reports on the dissatisfaction of some savers in the Society regarding the suggestion that even though the plan would pay them back most, if not all, of their deposits the funds would be returned over time and not immediately as they desire.
Stay tuned as details of the proposal and the church report are released.
I have just heard about the Special meeting of the General Assembly to discuss a financial contribution from Church Members to bail out investors in Presbyterian Mutual Society I’m not sure how this proposal is going to be dressed up but it sounds like it is going to be some sort of investment in the PMS. I cannot understand why anyone would invest in a failed institution which is insolvent and committee members should carefully consider their position before agreeing to such a proposal. The committee members are trustees of the congregations’ finances and as such have a statutory duty of care. I do not believe that a committee acting in accordance with that duty could invest in PMS.
Will anyone who has a pecuniary interest in the votes be permitted to take part? The Code of PCI prevents those having a pecuniary interest taking part in Congregational Committee meetings discussing such matters. If that is right for Committees it is right for the General Assembly as well.
For what it’s worth my personal view is there are plenty of us who have lost money in this recession who won’t be getting and aren’t expecting a bail out. There are 360,500 Presbyterians who had no say in the running of the Mutual society and 9,500 who did. It is quite unfair to ask those who had no say including very many people who aren’t fortunate enough to have spare money to invest such as widows and single parents to come up with money for those who do. I do not see why the 360,500 should bear any responsibility for the situation that has arisen. I know it is not a popular thing to say but the investors must bear some responsibility themselves. This was a mutual society – it did exactly what it said on the tin. It wasn’t a bank. The investors appointed the directors, they received annual reports, they were invited to the AGM’s. Their fellow Presbyterians weren’t. If the members want some redress for whatever loss they might suffer (has this been quantified?) they should seek it against those they appointed to run the society – the directors and not their fellow Presbyterians or fellow taxpayers.