Memorandum from the Guinness Trust (DCH
144)
Thank you for the opportunity to comment on
the draft Bill.
The Guinness Trust is a "registered social
landlord" (RSL) as well as a registered charity. As a RSL
the Trust is also regulated by the Housing Corporation.
My comments and the suggestions are brief and
are as follows:
SOCIAL HOUSING
1. I note that "social housing"
is not included as a charitable purpose but I imagine that the
purposes listed at Part 1, 2(2) should cover this activity. I
wonder whether the Charity Commission will provide guidance on
this activity?
PUBLIC BENEFITS
2. I wonder whether the phrase "public
benefit" test is best left undefined in the Bill? If so,
will guidance be available from the Commission on what may demonstrate
that adequate public benefit is derived from an activity for it
to be a charitable purpose? I would certainly welcome guidance
in due course.
INTEREST MANAGEMENT
BY CHARITABLE
RSLS
3. As a developing RSL, the Guinness Trust
takes out loans from banks and building societies to produce new
or improved social housing. These loans may be at fixed or variable
interest rates. Prudent management means that we try to manage
our exposure to movements in interest rates. Although the Housing
Corporation assesses whether a RSL has the systems and skills
to enter into the financial instruments/interest rate hedging
products, the Commission has its own process. This means there
is double scrutiny.
In the case of RSLs would it be possible for
the draft Bill to be amended to include provision for this scrutiny
to be delegated to the Housing Corporation.
June 2004
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