24th June 2009

Charities Disgusted At Government Compensation Decision

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A charities action group has voiced its disgust at the Government’s decision to refuse compensation for charities caught up in the banking crisis.

Save Our Savings (SOS), which represents 30 charities that had funds deposited in Kaupthing, Singer and Friedlander, has been told they will not receive any compensation and, in response, has accused the Government of ‘turning its back’ on charities.

Peter Hepburn, Co-Chairman of SOS and Chief Executive of Cats Protection, said, “I feel incredibly angry that the Treasury Select Committee’s recent report, which unanimously recommended charities be compensated, has been blatantly ignored by those in power and I see this as the Government effectively turning its back on charities.

“The Government has responsibility to regulate the banking system. Their aim has to be to protect depositors. They have failed to do so in the case of charities. Charities and their supporters have been left to suffer the consequences and are extremely angry with the Government.

“SOS represents a wide range of good causes that simply do not deserve to be treated with such disregard. Society relies on charities for help in so many ways and sadly this decision seriously compromises this vital work.

“I am also disappointed by the fact this decision appears to have been leaked nearly two weeks ago, prior to official transmission of the Treasury’s response to the Treasury Select Committee. I cannot help but feel this was a deeply cynical move, which totally undermines the importance of the issue, the authority of the Committee, the Parliamentary process and the charities affected.

“In fact, a Public Affairs Select Committee announced measures last week aimed at restoring respect for Parliament, saying that the lack of respect stemmed partly from the fact that the role of MPs trying to hold the Government to account had been reduced to one of ‘heckling a steam roller’. Unfortunately, despite the Prime Minister publicly endorsing these proposals, today’s announcement appears to send a totally conflicting message.”

Professor Khalid Aziz, Co-Chairman of SOS and Chairman of Naomi House, added, “I am thoroughly disgusted with the Government’s refusal to do the right thing. Once again it is charities, who rely on publicly donated money, who are left high and dry. The members of SOS feel as though we’ve had the door slammed in our faces and I know the charities, and their many thousands of well-wishers and supporters, will be extremely angry and disappointed to hear today’s news.

“Just last week we heard that the Christie Hospital in Manchester is to receive compensation via NHS North West, following contact with Downing Street and submission of a petition to Number 10. Whilst we are pleased for the Christie, I feel this raises serious questions as to whether the Government has acted in an even-handed way in its approach to compensation. We have been left with little option but to contemplate legal action on the many inconsistencies and inequities in the Government’s approach to compensation.”

SOS, which is led by Cats Protection and Naomi House Children’s Hospice, includes a broad spectrum of charities that represent a wide range of causes and collectively has around £50million at stake.

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