Minister apologises for Compact breach

10th December 2009

Minister for the Third Sector, Angela Smith, has admitted that she was in breach of the Compact when she pulled funding for the Campaign Research Programme.

Speaking during Cabinet Office questions in the Commons, Smith said she regretted breaking the Compact, which is supposed to guarantee how the Government and Voluntary sector works together, but maintained the decision was justified.

The decision to pull £750,000 of funds which had been promised to a group of small charities, caused dismay in the sector and NCVO has been campaigning on behalf of the affected groups.

Smith told fellow MPs, "It was a difficult decision to make, particularly because it was not Compact-compliant, which I regret and apologise for."

The Minister claims that her visits to voluntary organisations had shown her that the money would be better spent if it were added to the £16.7 million Hardship Fund.

In a gesture that will be of little comfort to the 32 campaigning organisations hit by the move, Smith said she apologised for the impact the U-Turn might have had on smaller charities and promised that the this would be an "isolated breach".

Smith had been answering a question from Jenny Willott, the Liberal Democrat spokeswoman on the third sector.

Afterwards Willott said:

"This is a startling admission by the Government that they have knowingly broken the terms of the Compact. I welcome the Minister's apology and commitment that it won't happen again.

"The Office of the Third Sector should be leading by example and demonstrating to all other public bodies the minimum standards that they are expected to meet when dealing with charities.

"The apology is important, but it doesn't make up for the financial mess that the government has created for the 32 small charities directly affected."

Conservative charities spokesman, Nick Hurd, said:

"With this one decision the department that is meant to champion the sector has made a mockery of the Compact and sent out a signal that it is all right for public grant-makers to treat charities in this shabby way."