The group – which carries out its work over the summer – was launched by the Prime Minister last month to bring together key stakeholders to try and find help for the £320m society, which suffered a run and went into administration in November.

However, the working group will not have a specific representative from 10 Downing Street, as had been announced.

After his first full discussion with Gordon Brown about the troubled mutual, First Minister Peter Robinson told the News Letter that he was reassured the Prime Minister was taking the matter seriously because Mr Brown would have a personal representative on the group.

However, the terms of reference for the working group, published in recent days by HM Treasury, confirm there will be no 10 Downing Street representative on board.

The Treasury terms of reference also state that the working group will submit a "draft report" to the Prime Minister in September. It is understood that this may indicate an acceptance that the working group's first report may not bring a final resolution to the PMS situation and that further lobbying may be required.

The group will be chaired by the Chief Secretary to the Treasury, Liam Byrne, while the other members will be First Minister Peter Robinson, Deputy First Minister Martin McGuinness, Secretary of State Shaun Woodward, Economic Secretary to the Treasury Ian Pearson, Minister for Finance Sammy Wilson and Minister for Enterprise Arlene Foster.

The Treasury noted that the first meeting of the group was July 16 and that the PMS administrator is also progressing his inquiries "in parallel" and is due to report back to members and creditors in September.


The working group's terms of reference are:

• To investigate the circumstances surrounding the collapse of the PMS;




• To consider the losses incurred by PMS members;




• To consider what, if any, action can be taken to mitigate investors' losses, particularly those hardest hit by the collapse of the PMS.

The group will take account of the legislative framework under which PMS operates; the work of the administrator; and wider financial services policy, fairness and value for money.

UUP leader Sir Reg Empey said that he believed the terms of reference "are sufficient to resolve this issue" but added that Government "has to accept culpability".

He said: "When they raised their guarantee on bank savings accounts to £50,000, they provoked a run on the society's assets."