Appendix 15
Further letter from the Chairman of the
Council
The Fairbridge Foundation (Sydney) to
the Chairman of the Committee
The Fairbridge Farm School, Molong, NSW and
The Fairbridge
Foundation (CM 260B)It has come to our attention
that, in a written submission made to you by an Old Fairbridgian,
Professor John Stocker, who was at both the Northcote Farm School
and the Fairbridge Farm School at Molong in NSW, are the words:
"Another complaint has been the mystery surrounding
Trust Funds set up from the proceeds of sale of the farm schools
or portions of the properties. It was assumed that these funds
would benefit former farm school members or their families, particularly
to help with education. This is definitely the case with the fund
established by the Fairbridge authorities in Canada but few it
seems have been able to access the Australian funds or even find
out to whom the money is paid".I assure you that there is
no mystery whatever about the funds derived from the sale of the
Fairbridge Farm School at Molong in 1973, which, until that time,
had been administered by the Fairbridge Farm Schools of NSW, a
company incorporated under the, then, NSW Companies Act.On 21
June 1976, as a consequence of the closing of the Farm School,
the name was changed to the Fairbridge Foundation.After the closing
of the Farm School at Molong, the matter of the disposal of the
money derived from the sale was discussed between the Fairbridge
Farm Schools Inc. of the United Kingdom and the Fairbridge Farm
Schools of NSW. It was determined that, since the money to establish
the Farm School at Molong and the bulk of the money to operate
it came from Australian sources, the money derived from the sale
should remain in Australia.It then became a question of what to
do with this money. Since the Fairbridge Farm Schools of NSW was
an incorporated company, this decision came under the purview
of and was largely influenced by the National Companies and Securities
Commission.The original Memorandum and Articles of Association
of the Fairbridge Farm Schools of NSW were amended to reflect
the changed situation and your attention is drawn particularly
to paragraphs 3(a) and 3(e) which set out the basic objectives
of the Fairbridge Foundation and also to paragraphs 3(i) and 3(s).The
latter paragraph 3(s) limits us to the making of donations to
Registered Charitable Institutions, which precludes any donations
to Old Fairbridgians and/or their families, or indeed to any private
individual.Paragraph 3(i) is based on a request made by the Fairbridge
Foundation, in its negotiations with the National Companies and
Securities Commission. But whereas the Foundation sought to limit
such scholarships etc to Old Fairbridgians, the Commission insisted
that any such endowments must not be limited to Old Fairbridgians
but open to all comers. This was done by adding the words "pupils
including" in the third line, and our real purpose was negated.
We accepted this changed wording as something better that nothing
at all.The money derived from the sale of the Farm School, totalling
approximately three quarters of a million dollars, are, in effect,
administered by the Council of the Foundation which is comprised
of 10 persons who receive no fees or other remuneration. The only
person receiving financial benefit is the Secretary to the Foundation
and for his working two half days per week in this position.The
Foundation keeps the personal files of the children who passed
through the Farm School at Molong. These files are accessible
to each Old Fairbridgian under the conditions which limit access
to him or her only.The 10 Council members meet about once every
two months, with contact by telephone or other communication between
them, and as necessary to carry out the workload which is shared
between them.The money from the sale of the Farm School are distributed
between real estate, gilt edged investments and stocks and shares.
The original $0.75 million in 1973 has been built up to assets
which now stand in excess of $2.5 million. Over the years to 1997
more than $2.2 million has been distributed as donations to appropriate
charitable institutions.Two copies of our latest Annual Report
are attached which list, on page 4, the institutions which have
received donations during the 1997 year. The list varies from
year to year. The amount so donated also varies, being largely
based on the current interest and property rental values.As for
any "mystery", our finances are audited each year in
accordance with the Corporations Law and are open for all to see.
Copies of our Annual Reports are sent to the Old Fairbridgians
Association each year.I trust this letter to you will dispel any
"mystery" which might have, or may still exist in the
minds of some people. If there is any further information you
may wish to have about this matter, please let me know and I would
be very pleased to send it to you.
25 June 1998
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