Rock’s charity arm seeks new chief
Jan 23 2009 by Paul James, The Journal
THE long-term future of Northern Rock’s charity arm appears bright after adverts were posted for a new £75,000-a-year chief executive.
The Northern Rock Foundation is looking for a new figurehead to replace director Fiona Ellis, who announced her resignation in November.
An annual £15m was guaranteed by the Government for the first three years of the nationalised bank’s life, and any plans for the charity beyond 2010 have not been made public.
But the job description reveals for the first time the safeguards that are in place for the foundation to continue its grants programme even if the money from the bank runs out.
The foundation, which has given away almost £200m to charities, community projects and major public works over the past 11 years, yesterday confirmed there are reserves in place to fund £11m of annual grants beyond 2010.
The job advert also says the foundation is “at an exciting time in its development” and is looking for a “dynamic individual with the drive and ambition to grasp the agenda and continue to develop this excellent organisation”.
Rob Williamson, director of policy and communications at the Northern Rock Foundation, said: “The Chancellor’s original statement a year ago when Northern Rock was taken into temporary public ownership said the foundation would receive £15m a year until 2010 and the board of the bank would be asked to look at the longer-term future of the foundation. That is something that, when the time is right, there will be a conversation about what that means.
“We do have reserves of around £26m that the foundation had built up over the past 11 years to cover unforeseen circumstances. There is money in reserve if the trustees wish to use it to continue their grant-making beyond the period that we know for definite we have that income.”
The foundation was set up when the bank was demutualised and in its first 10 years handed out £175m to good causes across the North East and Cumbria, receiving 5% of the bank’s profits.
Most of its grants go to frontline projects in the community to help the disadvantaged, but money has also gone to some the most high-profile projects in the North East in recent years, including the Sage Gateshead, the Centre for Life, Durham Castle and the Baltic arts centre.
The chief executive advert, posted on the jobsnortheast website, says: “Candidates will ideally have experience of working with charitable, government and external agencies… they must be able to evidence entrepreneurial leadership and effective team working skills.”
Last night a Northern Rock spokesman agreed it was too early to discuss the foundation’s future beyond the three years of guaranteed income, especially as the bank’s business plan is still evolving.
He added: “Northern Rock remains in close consultation with the Government regarding a revision to its business plan.”
