The Government has replied to the GSD’s latest press release on the use of Savings Bank money:

-   Government ignores Feetham / Opposition name-calling.

-   GSB Reserves reduced to £1,000 under the GSD – but forecast to end the financial year at over £6m under GSLP/Libs.

-   Deposits therefore safer than before.

The Government notes the latest statement from the Opposition on the Gibraltar Savings Bank.

The Government will ignore the insults and innuendos contained in that press release. Instead, Government will simply refer to the simple, unchallengeable facts.

1. The GSD in 2008 abolished the need for the Savings Bank to hold reserves and transferred the then total reserves of over £19m to the Government’s general account so that they could spend it as they liked on GSD Government projects.

2. The GSD issued Government Debentures, at higher interest rates than banks offered savers. They spent the debenture depositors’ money as they wished on GSD Government projects. The Capital and interest was to be paid by the taxpayer.

3. In the year and a half since the GSLP/Liberals were elected into Government, debentures are now issued by the Savings Bank and the reserves of the Savings Bank have increased from just £1,445 to over £3m and are projected to end the financial year at well over £6m.

Chief Minister, the Hon Fabian Picardo, said: “It is clear that the Savings Bank has increased its reserves by £6 million in the short time we have been in office to date from the record low of £1,445 (one thousand four hundred and forty five pounds) the GSD left to over £3m at the end of the last financial year and these are projected at £6.6m at the end of this financial year. In respect of the public finances, we have also grown our useable cash reserves in that time from about £3m at the end of the financial year 2011/12 to £85m already. My Government’s economic management record speaks for itself. The increase in the Savings Bank reserves speaks for itself. Actions speak louder than words and our actions demonstrate that deposits in the Savings Bank today are stronger and safer than ever, with growing reserves. The numbers speak for themselves and the Opposition’s continual scaremongering should be seen in that light.”