Government has 'turned its back on us' (From Hampshire Chronicle)

Government has 'turned its back on us'

4:04pm Saturday 27th June 2009

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NAOMI House bosses have accused the Government of turning its back on their patients and families.

After nine months of campaigning, the Sutton Scotney-based hospice said it was appalled by the Government’s decision to refuse compensation for the £5.7million it has at risk in the Kaupthing Singer and Friedlander bank (KSF).

The hospice is now considering legal action to recover its money.

Professor Khalid Aziz, hospice chairman, reacted with fury. He said: “The Government’s incapacity to understand the importance of these funds is disgraceful.

“Their refusal to compensate us means that we will struggle to continue providing our unique services to life-limited children and young people.

“The loss of this money could have a tremendous impact on hundreds of families who benefit from our work.

“Billions of pounds have been spent bailing out incompetence elsewhere in the economy, and yet our children, who are some of the most vulnerable in society, go unaided.

“Our hopes that the Government would do the right thing have been dashed.”

The hospice’s hopes for compensation had been raised when the Treasury Select Committee reported in May.

Last week Christies Hospital in Manchester was told that it will receive compensation for money it invested in KSF, via its local strategic health authority. Approaches made by Naomi House to its local SHA have so far failed, despite encouragement by central Government for the hospice to instigate negotiations to find a solution.

Professor Aziz said: “I am delighted for Christies, but it leaves me wondering if there is some kind of north-south divide in place here.

“Is there a difference between the children in the north and the south? It appears that Christies were successful because of the possibility of a legal judicial review.

“This type of action may be the only option left open to Naomi House.”

The hospice has suffered months of uncertainty since October 2008, when its deposits were put at risk when KSF went into administration.

It was forced to suspend its hospice at home service which helps families in times of crisis, and it is increasingly unlikely that its new unit for teenagers — Jack’s Place — will fully open this autumn.

In April the charity was advised by the administrators for KSF that it would receive at least half its money back. However, this could take three years to complete.

Prof Aziz added: “I like to think that, in the face of growing and overwhelming support for our case, the Government can no longer be deaf to our request to be compensated in full.

“We will continue our campaign to secure the return of the funds we have at risk in KSF.

“I personally implore the Prime Minister, Gordon Brown, to do the right thing — charity begins at home.”

A spokesman for the Treasury said: “The Government recognises that many third sector organisations, and not just those with deposits in Icelandic banks, are struggling due to reduced income at this time, and that is why the budget announced a £20m hardship fund to support front line third sector organisations in England.

“Compensating the Icelandic bank charities would be at the expense of providing this support to charities more broadly during the downturn.”

Steve Brine, the Tory prospective parliamentary candidate for Winchester, who has campaigned over the issue, said. “Now we know precisely what Harriet Harman meant when she said here in Winchester ‘we will not leave charities like Naomi House on their own’.

“Lots of people took great heart from those remarks shortly after this story broke, but Ms Harman clearly meant the very opposite.

“Not for the first time this Government has let Winchester down badly.”

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