Statement under Standing Order No. 19.20 on the Diana Memorial Fund

The Minister for Social Justice and Regeneration (Edwina Hart): On 30 July, I announced that organisations faced financial difficulties as a result of the Diana, Princess of Wales Memorial Fund being frozen because of a threat of legal action, and I stated that I would support them. However, the fund remains frozen and six organisations in Wales face extreme financial difficulties. The organisations and projects are: the Standing Conference of Voluntary Organisations’ Life Options project; Displaced People in Action; SOVA Refugees in Wales’s mentoring project; Nacro Cymru; the West Glamorgan Forum advocacy project; and Cardiff and District Multicultural Arts Development’s Refugees Behind the Headlines project. I therefore propose to enter into an agreement with the charity bank and the Diana, Princess of Wales Memorial Fund, where the Assembly Government will agree to the charity bank funding these organisations until March 2004.

The estimated total liability will not exceed £319,163 and will apply immediately after I have made this statement. There have been long and detailed discussions with the Diana fund and the charity bank on the appropriate mechanism to lend our support. I am content that providing an indemnity is appropriate as this mechanism will not require us to enter into separate agreements with each organisation, nor make arrangements for monitoring or laying alternative grant conditions.

The extent of any call on the Assembly’s indemnity 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 after March 2004, I will return to the Chamber with details of future options.

I have agreed in principle to authorise the notifiable transaction, which commits the Assembly Government to a future liability not exceeding £319,163 by, or before, March 2004. I trust that Assembly Members will concur with my reasons for doing so.