Charities Voice Disgust at Government Compensation Decision

HAYWARDS HEATH, England - A charities action group today 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 GBP50million at stake.

Notes to Editors:

Save our Savings (SOS) is an action group of 30 charities, covering a wide range of causes, that had a total of around GBP50 million frozen when Kaupthing, Singer and Friedlander Limited (KSF) was put into administration. Led by Cats Protection and Naomi House, the group has been formed to increase awareness of this issue and to ensure that charities have a bigger voice as they campaign for the return of their funds.

The principal spokespeople for SOS are Peter Hepburn, Cats Protection’s Chief Executive and Khalid Aziz, Chairman of Naomi House.

The Treasury Select Committee consisted of MPs from all parties and considered a vast amount of evidence before making its recommendation that the charities be compensated. The Committee scrutinised documents and reports and listened to evidence from all quarters and many experts.

Cats Protection’s vision is to ensure that every cat is given the chance of a life where it will be treated with kindness and an understanding of its needs. More information can be found at www.cats.org.uk

Naomi House is the children’s hospice for Berkshire, Dorset, Hampshire, the Isle of Wight, Wiltshire, West Sussex and Surrey. The charity helps over 220 children with life-limiting conditions and supports their families. Naomi House offers respite care, end of life care and bereavement support.

More information can be found at www.naomihouse.org.uk

Source: Save Our Savings (SOS)

For SOS media enquiries please contact Cats Protection’s Media Office on +44-1825-741-911 or email: media.office at cats.org.uk or Tina Lillington of Naomi House on +44-1962-760-060 or email tina.lillington at naomihouse.org.uk. Peter Hepburn and Khalid Aziz are available for interview today. To speak with Peter please contact the Media Office on +44-1825-741-911 or email media.office at cats.org.uk or to speak to Khalid please call Tina Lillington on +44-1962-760-060 to arrange.