Martin in 'positive' talks with Chelsea management

2.34.00pm GMT Mon 7th Dec 2009

CHELTENHAM MP Martin Horwood has today met with chairman and chief executive Stuart Bernau and head of communications Vicki O'Connell of Chelsea Building Society, which is due to merge with the Yorkshire Building Society in an effective takeover next year . The talks covered the prospects for the 700 staff at the two Cheltenham sites, the future of Chelsea's community programme and the part played by the Financial Services Authority and the Building Societies Association in allowing Chelsea to become so weak.

'I was very grateful for such a rapid meeting' said Martin 'and I was pleased to be assured of a meeting with Yorkshire Chief Executive Iain Cornish. As far as jobs in Cheltenham are concerned, I understand that very little has been finally decided but I am more encouraged than I was by the initial announcement. Talking through the complementary nature of the two businesses, I sense a real commitment to keep substantial operations in Cheltenham if at all possible. There clearly are going to be redundancies but there are significant areas of operation in Cheltenham that aren't duplicated in Bradford. I will put the strongest case for Cheltenham that I can to Yorkshire management when I meet them.'

'I also heard positive reports about Yorkshire's strong commitment to continued community involvement in Gloucestershire and not just locally to their own headquarters. If it is confirmed, that will be good news for local charities and schools.'

'More worrying were our discussions about the role of the Financial Services Authority and the Building Societies Association. It seems increasingly clear to me that more could have been done to support and protect building societies like Chelsea from predictable mistakes at the higher risk end of the financial services market. I would like to know what warnings were issued by the FSA and when. And if the FSA didn't see it as their role to protect the Chelsea and others from themselves, what was their own industry association the Building Societies Association doing as the alarm bells started to ring? I think there a quite a few questions that still need answers.'