Thursday 22 October 2009

Let's debate Highland Hospice's financial loss


Pictured: Myself with Maria McGill, Chief Executive of Highland Hospice

I've lodged a motion for debate in the Scottish Parliament urging action from the Scottish and UK Government to help compensate Highland Hospice after it lost £658,832 following the collapse of an Icelandic bank.

Due to the nature of the Financial Services Compensation Scheme criteria some wealthy individuals have been repaid after the UK subsidiary of Icelandic bank Kaupthing, Singer and Friedlander went into administration last year. It's also important to note that despite a Westminster Treasury Committee recommendation that all charities be compensated, it still has not happened.

Paying over £25,000 in interest along since the September 2008 collapse, Highland Hospice has only managed to recover £132,294, leaving a black hole of £526,538 in its accounts in contrast to the Christie Hospital in Manchester, a situation in which the Prime Minster directly intervened, resulting in their full compensation. I understand that the reason why the Highland Hospice it has not being bailed out by the UK Government is that the new Third Sector Resilience Fund (introduced by the Scottish Government) would count against it. However I also understands that Highland Hospice does not qualify for the fund.

Therefore the Scottish Government must re-asses the criteria for the resilience fund and I call on the UK Government to fairly recompense all charities including Highland Hospice.

I hope that this motion attracts enough cross party support to allow it to be debated in Parliament. The palliative care carried out by the Hospice is invaluable and unique. It delivers great dignity to those in their final moments of life. And acts as a great comfort to their families and friends. It is important that it is not allowed to end. I hope that both the Scottish and UK Government can take action that makes sure that the excellent care provided by the Hospice throughout the Highlands and Islands can continue.

Further, I have lodged a series of written questions with the Scottish Government asking if the resilience fund can be restructured to allow applications to be made by organisations which were affected by the collapse of the Kaupthing, Singer and Friedlander bank. I will report back on those answers when they are recevied.

A copy of my motion for debate follows for reader interest and comment:

Fair Treatment for all Investors in Kaupthing, Singer and Friedlander

That the Parliament recognises that many charities lost large amounts of money when the UK-based subsidiary of Icelandic bank Kaupthing, Singer and Friedlander was placed in administration by the UK Government in 2008; notes that the Highland Hospice, the only hospice serving adults with incurable life-limiting disease in the Highlands and acknowledged as the centre of specialist palliative care expertise in the region, was one of these depositors; considers that, due to the arbitrary Financial Services Compensation Scheme criteria, some wealthy individuals have been compensated for their loss in full and that, due to a direct intervention by the Prime Minister, the Christie Hospital in Manchester, a registered charity, was fully compensated but that Highland Hospice has not been compensated for its loss, despite a Treasury Committee recommendation for charities to be recompensed, and understands that this is because the UK Government has stated that this would affect the general help provided to the third sector by the Resilience Fund launched earlier this month by the Scottish Government; understands however that Highland Hospice does not meet the criteria of the Resilience Fund, and would therefore welcome both a review of the Resilience Fund's criteria and that the Scottish Government make representations to the UK Government to fairly recompense all charities and enable Highland Hospice to continue to provide invaluable palliative and end-of-life care throughout the Highlands of Scotland.


Copy of my written questions to Scottish Government also follow below:

To ask the Scottish Executive what the criteria are for charities to receive funds from the £1.7 million Third Sector Resilience Fund.

To ask the Scottish Executive who will be responsible for the dispersal of funds from the Third Sector Resilience Fund.

To ask the Scottish Executive whether applications to the Third Sector Resilience Fund from organisations that have been affected by the collapse of the Kaupthing Bank will be given special consideration.

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