THE PRESBYTERIAN moderator Dr Donald Patton has urged church members to petition the British prime minister Gordon Brown for assistance over the crisis affecting the Presbyterian Mutual Society.
Thousands of people face losing much of their savings after the society was placed in administration in November. The society was plunged into difficulty after there was a run on its funds as savers withdrew money because the society was not covered by the banks’ financial guarantee. It was also prompted by concerns the society had over-invested in commercial property, which had lost a considerable portion of its value because of the building slump.
A letter from Dr Patton was read out at Presbyterian services yesterday urging church members to petition Mr Brown in Downing Street “to provide similar governmental guarantees to UK mutual societies as for banks”.
“I do not know what the eventual outcome of these approaches, and of the administrator’s work, will be. Clearly it will be some time before we know. I urge our people to keep these matters constantly in your prayers and for us all to hold together through these stormy times,” said Dr Patton.
“The problems are impacting every area of our work and witness and the issue is proving very difficult for the church to deal with.”
The North’s First Minister Peter Robinson and Deputy First Minister Martin McGuinness are also seeking a meeting with Mr Brown about the issue.
The mutual society was started by Presbyterians in 1982, with membership confined to church members. It started off modestly, but by last year the society had nearly 10,000 members from across Ireland and £300 million (€314 million) in assets.
Last week the administrator Arthur Boyd wrote to investors recommending a set of proposals in which, he said, they would get some money back.
