Statement on the Notifiable Transaction Pursuant to Standing Order 19.16 - Diana, Princess of Wales Memorial Fund.

I propose to authorise a notifiable transaction to which standing order 19.16 applies.

On 10 December 2003, I made an oral statement to the Assembly in accordance with Standing Order 19.20 authorising a notifiable transaction in respect of the Diana, Princess of Wales Memorial Fund. The content of which was to effect my intention to support six organisations in Wales who faced financial difficulties as a result of the Diana Fund being frozen.

I return to the Assembly to state that I intend to extend the period of protection and to increase the amount of liability I am prepared to offer the affected organisations in Wales, in order to ensure that the services provided are continued in 2004-05.

The differences between the Diana, Princess of Wales Memorial Fund and Franklin Mint have not yet been resolved. The continued threat of legal action has resulted in a continuation of the Diana Fund being frozen, creating financial difficulties for these organisations.

Of the six organisations, two organisations SCOVO life Options Project, and Displaced People in Action no longer require funding support as their grant has come to an end.

The four organisations based in Wales still affected are

SOVA Refugees in Wales Mentoring Project.
NACRO Cymru Project;
West Glamorgan Forum Advocacy Project; and
CADMAD Refugees behind the Headlines Project.

I propose to continue to support these organisations until the end of March 2005.

The agreements with the Charity Bank and the Diana, Princess of Wales Memorial Fund will remain in place, where the Charity Bank provide funds to these organisations and for the period stipulated by the Assembly.

The estimated total liability will now increase to £575963, but will not exceed this amount. It will apply 10 days from the date of this transaction and provided no Assembly Member objects.

I am content that the proposed mechanisms to provide support to these organisations is the most appropriate. The extent of any call on the Assembly’s budget will be determined by the ability of the Diana Fund to meet its grant commitments once the outcome of any legal action against it by the Franklin Mint has been concluded or an agreement is reached between the two parties.

If, in the light of events, we identify a need for further commitment post March 2005, I will return to this chamber with details of future options.

I have agreed in principle to authorise this Notifiable Transaction committing the Assembly Government to a future liability not exceeding £575,963 by or before March 2005, and trust Assembly Members will concur with my reasons for doing so.