Carmichael raises future of Scottish charities in House of Commons (Gordon Liberal Democrats)

Gordon Liberal Democrats <info@libdems.org.uk>

Carmichael raises future of Scottish charities in House of Commons

October 22, 2009 2:55 PM
Originally published by Scottish Liberal Democrats

Orkney and Shetland MP Alistair Carmichael today questioned the Leader of the House of Commons, Harriett Harman MP on what action the government plans to take to resolve the ongoing dispute over future funding between Lloyds TSB and the independent Lloyds TSB charitable foundation for Scotland.

Speaking during Business Questions, Mr Carmichael asked;

"Can we have an urgent statement from treasury ministers to explain what they intend to do to resolve the current dispute between the directors of Lloyds TSB and the directors of the Scottish Lloyds TSB Foundation, the charitable arm of that bank. The director of the foundation reckons that there are seven weeks to go before she has to wind up her organisation with a massive loss to many charitable and voluntary organisations across the country if that dispute is not resolved. Surely this wasn't what Ministers had in mind when they put well over £20billion pound of taxpayers money into Lloyds TSB."

Harriett Harman MP replied;

"I shall reflect on which Ministerial team really ought to be looking into this. I am not sure whether it should be the Cabinet Office responsible for charities and charity commission or Treasury Ministers but I will write to him and let him know."

Commenting after his exchange in the House of Commons, Mr Carmichael said;

"The Financial assistance from the Lloyds TSB Foundation for Scotland is absolutely crucial for many charities and voluntary organisations. For it to be subject to uncertainty of this sort is unforgivable. The government owns 43.5% of the Lloyds TSB group, they must accept there responsibility and sort this mess out."

Earlier this week the Lloyds TSB Foundation for Scotland announced that it is closing its doors "indefinitely" to new applications for grants - amounting to £6 million a year. The foundation was one of four set up in 1985 by an Act of Parliament when the Trustee Savings Bank, founded in Dumfries-shire, was floated on the stock market. Since then, over 12,000 awards amounting to almost £85 million have been dispersed to charities working with disadvantaged communities and people. Scotland has 45,000 charities and the sector's income is £4.1 billion.

Notes:

Mr Carmichael tabled EDM 21071 earlier this week.

That this House notes with regret the recent decision by Lloyds Banking Group to cut its Scottish charitable foundations funding worth an estimated £6 billion annually; notes the concerns raised that many Scottish charities face closure, job losses and scaling down as a result of the loss of funding; further notes that Scottish charities are set to lose £22 million over the next nine years as a result of the bank's new proposals; further notes that over the past year Lloyds Bank has received over £40 billion in Government aid; recognises that the charitable foundation is an independent body which operates to a covenant put in place by an Act of Parliament; applauds the work of the foundation which since its establishment in 1985 has delivered more than 12,000 awards totalling nearly £85 million to disadvantaged people and communities across Scotland; and urges the bank to reconsider its funding cuts decision.