Economic Development Minister Alan Maclean is taking proposals for a depositor protection scheme to the States, but the Scrutiny panel chairman reviewing the work has said that he will use his power to ‘call in’ the proposals.
Economic Scrutiny chairman Deputy Mike Higgins said that the proposed scheme could expose the States to a £100m liability and the law could not be allowed to ‘go through on the nod’.
Under the proposals, depositors would get protection of up to £50,000 each – in line with similar schemes in the UK, Isle of Man and Ireland. The first £65m paid out would be covered by a levy on banks, and any excess up to £100m would come out of the Strategic Reserve.
Deputy Higgins said that with such a huge amount of money involved, the States cannot justify rushing the law through.
