APPENDIX 2
DEPARTMENTAL MINUTE FROM THE MINISTRY OF
DEFENCE CONCERNING THE REPORTING OF A CONTINGENT LIABILITY FOR
THE UNDERWRITING OF FUNDING FOR THE ARMED FORCES MEMORIAL
It is normal practice, when a Government department
proposes to undertake a contingent liability in excess of £250,000
for which there is no specific statutory authority, for the department
concerned to present to Parliament a Minute giving particulars
of the liability created and explaining the circumstances; and
to refrain from incurring the liability until fourteen days (exclusive
of Saturdays and Sundays) after the issue of the Minute, except
in cases of special urgency.
The Armed Forces Memorial, dedicated to some
16,000 members of the United Kingdom Armed Forces killed on duty
or as a result of terrorist action since the end of the Second
World War, is to be constructed at the National Memorial Arboretum
in Staffordshire. The costs of the whole project are expected
to be in the region of £6 million and the Trustees of the
Armed Forces Memorial Trust are raising this money by public subscription.
The Chancellor of the Exchequer announced on 13 February 2006
that the Treasury would contribute £1.5 million towards the
appeal from the proceeds of the sale of Trafalgar Coins. These
are non-public funds.
The concept for the memorial was first announced
in the House of Commons by the then Secretary of State for Defence,
on 10 November 2000. The Ministry of Defence now wishes to provide
an indemnity of £3.3 million to the Trust to underwrite the
costs of the project that are not yet covered by donations. This
underwriting will allow the Trustees to proceed with contractual
arrangements to meet the unveiling deadline of September/October
2007.
It is the Trustees' intention to meet all costs
from funds raised from public subscription. Officials from the
Ministry of Defence will work closely with the Trustees to ensure
that the risk of the guarantee being called on is minimised. If
the liability is called, provision for any payment will be sought
through the normal Supply procedure. Any such payments would be
recovered from future public subscriptions.
The Treasury has approved the proposal in principle.
If, during the period of 14 days (exclusive of Saturdays and Sundays)
beginning on the date on which this Minute is laid before Parliament,
a Member signifies an objection by giving notice of a Parliamentary
Question or by otherwise raising the matter in Parliament, final
approval to proceed with incurring the liability will be withheld
pending an examination of the objection.
22 May 2006
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