Carmichael urges Charity Minister to intervene in ongoing Lloyds dispute (Gordon Liberal Democrats)

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

Carmichael urges Charity Minister to intervene in ongoing Lloyds dispute

October 28, 2009 3:34 PM
Originally published by Scottish Liberal Democrats

Orkney and Shetland MP Alistair Carmichael today urged Cabinet Minister for the Third Sector, Angela Smith MP to intervene in the ongoing dispute between Lloyds TSB and the Scottish Foundation.

Speaking during Business Questions, Mr Carmichael asked;

"Many charities in my constituency are already facing difficulties as a result of the economic climate and are now having a further threat as a consequence of the dispute between the Lloyds TSB foundation and the Lloyds TSB banking group. Will the Minister do what she can to intervene in that dispute to broker some sort of settlement so the contributions that the foundation makes to many charities in Scotland can continue."

Angela Smith MP replied;

"I would love to be able to do so but I think that may be beyond my powers as well. Obviously any support and advice we can give I am happy to do so, but I understand the Scottish executive has looked at this as well. I think it is time to perhaps place on record so the message can go back how much we greatly value these foundations and the support given by foundations and hope that efforts can be made to make sure this continues."

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

"Listening to the Minister's reply I found my self wondering what role government thinks it has in charity regulation. The obligation on Lloyds TSB to pay this money is one which was set up by government when TSB was demutualised. If the Minister thinks that she has no right to intervene in a bank 43.5% owned by the tax payer, then we can only assume it is because she has chosen not and to and she should explain her reasoning to tax-payers."

Mr Carmichael has already tabled EDM 2071 on this matter and last week raised the issue with Leader of the House Harriett Harman MP.

Lloyds TSB Scottish Foundation today confirmed to Mr Carmichael that they are currently supporting two charities in his constituency - Home Start Orkney and the Sanday Development Trust.

Mr Carmichael also received a letter from Orkney Alcohol Counselling and Advisory Service detailing how they have over the last few years received a significant amount of funding from the foundation which has helped them grow from a one person organisation to one which employs six people and provides 10 volunteers.

Notes:

Mr Carmichael tabled EDM 2071 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.