To ask the Secretary of State for Communities and Local Government if she will seek information from local authorities on advice they received from Butlers in relation to the depositing of funds in Icelandic banks. (261631)

Decisions on investment policy are a matter for individual authorities who must have regard to investment guidance issued by my Department.

To ask the Secretary of State for Communities and Local Government with reference to the Answer to my hon. Friend the Member for Brentwood (Mr. Pickles) and Ongar of 17 October 2008, Official Report, column 1577W, on local government: bank services, what information (a) her Department and (b) the Audit Commission received from (i) the Financial Services Authority, (ii) the Bank of England and (iii) HM Treasury on the level of risk associated with investment in Icelandic banks before October 2008. (261989)

On part (a), my Department did not receive, nor would we expect to have received, information from any source on the Icelandic banks. As the Department’s investment guidance, published in 2004, makes very clear investment decisions are a matter for the local authorities concerned,

On part (b) the Audit Commission has confirmed that it did not receive, nor would expect to receive, information from the sources named in the question regarding investments in Icelandic banks.