Oct 31 - GSD Presses "Transparency Obsessed" Picardo On Savings Bank
The GSD Opposition have announced that they will be meeting shortly to decide its next steps in what it terms the “very grave matter that led it to take the rare but necessary” step of leaving Parliament.
A statement from the party continues: “There are two vitally important issues at stake. One is of great economic importance to Gibraltar but the other goes straight to the proper working of our Parliamentary democracy and Parliament's ability to scrutinize the use of public money by the Government.
“The Government have used £344 million of Gibraltar Savings Bank money to buy shares in a Government owned company called ‘Credit Finance Company Limited’. That Company then lends that money to private companies and citizens, and to other Government companies, to fund private and Government projects and expenditure.
“Mr Picardo and Mr Bossano have refused to answer Opposition questions in Parliament about what this Government owned company, ‘Credit Finance Company Limited’ does with the money. This is effectively "off balance sheet" Government expenditure, using Gibraltar Savings Bank money and without Parliament's scrutiny or control.
“Parliament's Constitutional function to scrutinise the use by the Government of public monies is thus by-passed in respect of huge sums of money, rendering Parliament irrelevant. In terms of the importance of Parliament in respect of public finances and its ability to monitor the future solvency of Gibraltar, the Government's refusal to account to Parliament could hardly be more serious. This is why the Opposition left Parliament.
“Mr Picardo is deceiving public opinion when he implies that the GSD Government and Sir Peter Caruana used to do the same thing. The very opposite is true. The GSD Government made itself accountable in Parliament for the affairs of Government owned companies precisely because they were effectively handling public funds.
“This is the "new dawn" Government that promised more openness and transparency while it misled voters into thinking that under the GSD Government public finances were concealed behind "an impenetrable curtain"!
“The second issue, of justified concern to Savings Bank Debenture holders is Parliament's inability to check the safety of savers' money and Government's continuing ability (given that it guarantees the Savings Bank) to repay it when debentures mature.”
Leader of the Opposition Daniel Feetham said:
"This issue is not going to go away. It is too serious to be lost in the mist of Mr Picardo's glib "spin". The issue goes to the very heart of the role of our Parliament and the economic well being of Gibraltar and its future generations. The Opposition will do its duty to Gibraltar and continue to deal with it and take action in keeping with the importance of the issues.
“We will make separate detailed statements during the next few days about each of these two issues.
“I call on the GSLP/Liberal Government to revert to the position under the GSD Government whereby the Government made itself accountable in Parliament for its Companies. What does the "transparency obsessed" Mr Picardo have to hide? What does he not want the people of Gibraltar to know?”
