§ 36. Mr. Geoffrey Clifton-Brown (Cotswold)If he will make a statement on the performance of the Commissioners' investment; and how it affects their ability to support the dioceses. [2458]
§ Mr. Stuart Bell (Second Church Estates Commissioner, representing the Church Commissioners)In 2000, the total return earned by the commissioners on their investments was 3.1 per cent. This compared favourably with the Wood Mackenzie all-funds universe average of minus 1.3 per cent. The commissioners were in the top 10 per cent. of funds measured by WM.
§ Mr. Clifton-BrownWith great respect to the Second Church Estates Commissioner, I thought that his answer was slightly complacent. He will be aware that, on investment assets of £3.1 billion, the Church's expenditure over income last year was £34 million—a loss of £34 million. That was the third year in a row in which the Church made a loss. Will the hon. Gentleman undertake carefully to look at the Church's expenditure, including the immovable costs such as pensions, to ensure that the income can better be directed to the Church's ministry as a whole, rather than being used to meet unnecessary costs?
§ Mr. BellIn relation to support for the dioceses, our good investment performance means that more money is available to support the parish ministry in areas of need and opportunity. The asset base of the commissioners is £4.5 billion, not £3.1 billion. On the hon. Gentleman's question about pensions, the commissioners have agreed to make a further £10 million available for transitional relief for pension contributions in the period 2002–04.
§ Mr. Tony Banks (West Ham)May I say to my hon. Friend that one would have thought that, with God on their side, the commissioners could get a rather better return on their investments? Does he accept that it would be advisable for the commissioners to consider ethical investment because it not only makes a good return but would be good for the morality of the Church and its position?
§ Mr. BellI am grateful to my hon. Friend for his question and welcome him back to Church Commissioners Question Time. He makes a perfectly valid point. We have an ethical investment unit that 19 considers and makes a proper statement regarding the commissioners' investments, although we take my hon. Friend's point very much on board.