Gib Opposition Expresses Concern At Banking Decline

by Philip Morton, Investors Offshore.com

12 July 2002

The Gibraltar Opposition launched a stinging attack on the GSD government this week, accusing them of failing to attract any new banks to locate on the Rock, and of driving previous banking licence holders away.

Speaking following the announcement that 23 jobs are likely to be lost as Abbey National Bank downgrades its Gibraltar activities, Opposition Spokesman on Trade and Industry, Dr Joseph Garcia alleged that:

'When they came into office there were 26 banking licences issued to banks in Gibraltar. Over the years the number has declined steadily. In March last year the figures produced by the Financial Services Commission show that the number of banking licences was down to 19, and by November of last year it had gone down further to 18.'

Meanwhile, rumours that today's meeting between the UK and Spanish Foreign Ministers has been postponed due to the Spanish government reshuffle were confirmed.

Following a meeting with the former incumbent, Josep Pique, Ana De Palacio contacted UK Foreign Minister, Jack Straw to call the meeting off until after the summer, according to reports.

However, the timing of Ms De Palacio's appointment, and her professions of ignorance over the intricacies of the Gibraltar situation have raised suspicions on the Rock.

Reporting on the cancellation of the talks, the Iberia news service observed that there has been: 'speculation that her presence signals Spain's decision to restart the talks at another level, using her inexperience over the Gibraltar issue as an excuse to seek a fresh new outlook whilst allowing the present talks to collapse.'

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