Charities-Plea for plan over Iceland crisis

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2008-12-09 (All day)

By John Plummer, Third Sector Online, 9 December 2008
Voluntary sector calls for government action to help charities with money in failed banks
Four voluntary sector representative bodies are writing to City minister Paul Myners this week urging him to spell out how the Government proposes to help charities with money tied up in failed Icelandic banks.

The move comes amid growing frustration at ministers' refusal to pledge support for the estimated 48 charities that have up to £200m at risk.

Treasury minister Angela Eagle last week rejected a suggestion from her Conservative shadow Mark Hoban that the Government establish a temporary funding facility for charities with money in Icelandic banks.

Chief executives body Acevo, umbrella body the NCVO, the Charities Aid Foundation and the Charity Finance Directors' Group are writing to Myners.

"This delay is causing great concern," said Stephen Bubb, chief executive of Acevo. "All those involved want to put next year's budgets together and need to know what the Government is proposing."

Stuart Etherington, chief executive of the NCVO, called on the Government to guarantee that "no charity will go under while waiting for their funds to be returned".