Northern Rock Foundation assured of £15m a year
March 2008
The recently announced nationalisation of Northern Rock plc includes provision of a minimum income of £15m per year in 2008, 2009 and 2010.
This income will be paid to the foundation by the publicly-owned bank. If an acceptable buyer did emerge during this three-year period, the payments would be a condition of sale, so Northern Rock Foundation does at least have funding assured for the short and medium term.
The new board of ‘British Rock’ will be asked to identify a viable long-term future for the foundation, which has been supported through an annual donation of 5 per cent of Northern Rock plc’s pre-tax profits. Over £190m has been donated so far and it has been a worrying time for trustees who are constitutionally unable to comment on or influence the outcome of any bid. ‘The bank cannot tell us about its discussions and we do not ask’, they state.
However, Rob Williamson, the foundations director of policy and communications told Caritas magazine ‘we are just really pleased that provision has been made for us to carry on our important work and that at least the longer term is on the board’s agenda’. He also confirmed that the foundation would not have to change its name.
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