Michael MHK says compensation fund isn't necessary

Tuesday, 17 July 2012 01:00

The MHK for Michael believes a £100m Depositors Compensation Fund isn't necessary or needed at the moment.

It's proposed the money to create the fund will come from government reserves which are due to fall from £400m to £189m by next March.

The Pinewood Studios investment will also be funded from reserves and £55m will go into the general revenue account.

Alf Cannan has raised concerns about the depletion of the reserve fund.

He doesn't think the expenditure will benefit the economy in the long term.

(PLAY AUDIO ABOVE)

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