Thurso calls for Lloyds to meet with Foundation

12.00.00am GMT Tue 26th Jan 2010

Local MP John Thurso, at a hearing of the Treasury Select Committee, pressed Lloyds Banking Group Chief Executive, Eric Daniels, to continue to fund the Lloyds TSB Foundation for Scotland.

The charitable foundation was founded when the Trustees Savings Bank demutualised and the Foundation has become a major source of funding for charities across Caithness, Sutherland and Easter Ross. Following the recent merger of HBOS with Lloyds the new Lloyds Banking Group has proposed a cut in the percentage of profits to be given to the Foundation which its Trustees have rejected. Currently the Lloyds Banking Group is threatening not to make any payments to the Foundation which will make it unable to continue its valuable charitable work.

John Thurso said:

"Lloyds TSB Foundation for Scotland regularly gives money to deserving organisations in Caithness. If they are unable to maintain that funding it will be a major blow to the voluntary sector in the Far North. My understanding is that there is a legal problem over what the Lloyds Banking Group is proposing and I therefore raised this with Eric Daniels when he came before us. He said he was not aware of the legal problems but promised to look into the matter.

"Together with the Select Committee Chairman, John McFall, he and I are urging Lloyds to meet with all of the Trustees to try to find a resolution."