HL Deb 10 February 1993 vol 542 cc46-7WA
Lord Denning

asked Her Majesty's Government:

Further to the Answer of Baroness Blatch on 27th January 1993 (WA 94), whether the Department will specify the words in Article 5(1), (9) and (10) which refer to the proceeds of sale and make those proceeds subject to any, and if so, what trust, and do so with sufficient certainty to create a valid trust: in contrast to Article 4(7) and 6(6) which are sufficiently specific; and whether they will take steps to obtain details of the proceeds of sale without waiting for a request to make a determination, seeing that such requests may not be made in the foreseeable future, or at all.

The Minister of State, Department of Education (Baroness Blatch)

Article 5(1) of the Diocese of Guildford (Educational Endowments) Order 1990 appoints the Guildford Diocesan Board of Finance as trustee of "(a) the foundations; (b) the trust assets of the foundations; and (c) the School Funds established by article 4." Article 5(9) vests "all land and hereditaments belonging to or held in trust for a foundation immediately before the operative date" in the diocesan board for "all the estate and interest of the foundation therein." Article 5(10) transfers "all funds belonging to or held in trust for a foundation immediately before the operative date" to the diocesan board. The expression "the foundations" is defined in article 2(1) to mean "the foundations specified in the first column of the schedule". The schedule refers to "Dorking St. Martin's Church of England School (comprised in a deed dated 4th March 1861)" and "Ottershaw Church of England School (comprised in a deed dated 20th November 1869)". The assets listed in column (2) are relevant only to provisions involving the "trust assets" (also defined in article 2(1)) and do not affect the construction of "the foundations", which accordingly, in the case of Dorking St. Martin's and Ottershaw Schools, extends to proceeds of sale of the original school sites. The proceeds of sale of the former premises of Dorking St. Martin's and Ottershaw schools were among the funds belonging to or held in trust for a foundation that were transferred to the diocesan board by Article 5(10) and are held on trust by them under Article 5(1).

Article 4(7) divides the St. Martin's Church of England School into the St. Martin's Church of England School Fund and the St. Martin's Church of England Sunday School Fund. Article 6(6) declares trusts in respect of the trust assets, other than those that form part of the Sunday school funds established under Article 4. Because the order declares new trusts only in respect of the "trust assets", any other assets of the foundations vesting in the diocesan board under Article 5(9) or (10) would be held by them on the trusts of the original trust deeds.

The proceeds of sale of the former schools premises are vested in the diocesan board pending conveyance of the new school sites by the local education authority to the trustees under paragraph 6 of Schedule 1 to the Education Act 1946. The Secretary of State does not propose to obtain details of the sale proceeds before completion of such conveyance. At that time, the information will be required in order to make a determination of the proceeds in favour of the authority under paragraph 7 of that schedule.