St Christopher's

[Gladys]

St Christopher's, the new childcare provider which took over the MFS service, has remitted £275K to its UK counterpart, this being the surplus from its IOM operations.

 

The Manx operation is an Isle of Man registered charity, yet it is able to remit the surplus to the UK effectively meaning that the IOM Government is funding the UK part of its operations. This surplus should be kept within the Manx operation and used to the benefit of Manx children in care. It is not a commercial operation which is free to pay dividends to its holding company, it is a charity and if it is registered here its objectives, surely, are to provide its services to the island.

 

Mr Teare was full of praise for the economies found by St Kitts, and so he should be, but the benefit of those savings should be retained here on the island, not sent to some central pot.

 

Now it may be that this is, perhaps, inaccurate reporting and what is being remitted is a repayment of initial costs funded by the UK counterpart. If that is the case, then all well and good, but future savings which create such a surplus should be retained here for our benefit in either improved services or a reduced level of Government funding.

 

I don't know if anyone else is as incensed by this as me (and I feel a little like Copycat, here) but I really think a full explanation shoud be given and that the exact nature of their constitution on the island examined a little more closely.

[Foxtrotlima]

I have to be honest Gladys, this is pretty standard procedure for any care services bought in to the IOM Govt from a Charity.

 

They Govt puts a contract out to tender, and it goes to whoever they choose, for the price that the sub contractor states.

 

If the quote was for £4 million, and the charity manages to provide the care for £500,000 less for that period, then the money goes to the Charity, no questions asked seemingly.

 

How the Charity gets round it, as by its very definition is a non-profit making organisation, is by putting the surplus money into a central "fundraising" account.

 

I am as incensed as you are, as you can imagine, hence my recent career change. Unfortunately the problem lies with Tynwald, as they have capped the Govt from employing extra staff for at least another year to my knowledge (this was originally a 5 year cap), and even with the ridiculous amounts of surplus from these contracts, it is still a cheaper way of providing care.

 

The terms and conditions that some of the charities are offering their staff are way below the standards of the Govt workers.

 

It saddens me that all it is is a cost cutting exercise on paper, but what is the actual cost?

[%age]

They are a business.

 

Same as advocates, same as dentists, same as doctors, same as sewage services, rubbish collection, same as same as same as. . . . . . . . .

 

Welcome to President Tony Blair's Socialist Ideals.

 

£££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££

[Gladys]

No, %age, that is the point, they are not a commercial, profit-motivated operation. They may organise their affairs on comercial lines so that they make surpluses, but I do not see how they can remit the surpluses off island when they are an IOM registered charity.

 

FTL, I don't have a problem with them making a surplus (note, not a profit, but a surplus), you could expect that until both sides bed into the new arrangement. And you would also want the charity to build up reserves so that it could undertake new initiatives in pursuit of its charitable objectives. But it is what is done with the surplus and the fact that it is going off -island that is bothering me.

 

The provider of the services is an IOM charity, its website says so. The money it receives must be applied to its charitable objectives as stated in its constitution; that is the law - anything else and the charitable trustees are in deep do-dos. Now there is the rub, if their constitution says that its objective is to assist in the provision of child care services on the IOM, then all money it receives must be applied to that purpose. If, on the other hand, its objectives are to assist in child care anywhere then it can remit to its UK affiliate, I suppose. But someone should scrutinise very closely whether this payment was permissable under its constitution and in line with its status as a Manx registered charity.

 

It is all bound up in how it has been set up over here, but really, cut through all that, isn't the point of a Government funded service for the public good here, not elsewhere? I am sure they do a great job and are professional, but couldn't more be done here with that money?

[Foxtrotlima]

I understand your point with surplus as opposed to profit completely.

 

It would sit considerably more comfortably with me personally if the surplus was not allowed off island, and had to be automatically regenerated into whichever care home, or group of homes, benefiting the people for whom the care has been contracted.

 

I think the major downfall is that all these Charities are competing for funds, regardless of geography. From my personal experience, all it seems to be is "Beg Peter to borrow Paul".

 

I honestly wish I knew what the answer was, but these contracts seem to be watertight.

[Not the Comfy Chair]

Eddie Teare is usually spot on when it comes to financial matters, and he seems happy with this transfer.

 

But I agree that, morally, any surplus, i.e. overpayment, from the Island, should remain on the Island.

 

And, following up on your point about their charitable objectives Glad, if their articles, or whatever define their legal obligations, allow them to ship funds off Island, we need to learn from this. In future, we should ensure that a condition of the approval of charitable status, where that charity's objectives are to improve life on the Island, is that surplus funds are retained here.

[Gladys]

Exactly so Comfy and FTL. This is a point for their constitution, not the contract as the contractual provisions cannot override their constitutional provisions.