Hospice has millions invested in Icelandic bank

4:10pm Thursday 9th October 2008

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A NORTH Hampshire children's hospice could face financial problems due to the collapse of an Icelandic bank.

Naomi House Children's Hospice, in Sutton Scotney, has £5.7million invested with Kaupthing Singer and Friedlander, which plunged into administration yesterday.

A statement released on behalf of the hospice said that while the sum was "significant" it did not jeopardise any of the hospice's services as funds were in place to cover continuing costs.

The statement continued: "This situation does leave a significant gap in our financial reserves at this immediate time.

"However, we are still able to move forward with our plans to open jacksplace@naomihouse, the new hospice for young people, but we will be stretched to do so."

Professor Khalid Aziz, chairman of Wessex Children's Hospice Trust, said: "Clearly this is potentially worrying news for our families, staff, volunteers and supporters but I want assure them that everything is being done to ensure full recovery of our funds.

"There will inevitably be some delay in receiving our money but we believe we have the necessary reserves in the short to medium-term to weather the storm. For all involved it is very much 'business as usual'.

"We ask that the public continues its support of our fundraising activities to ensure that the trust is able to deliver its support into the future."

• THREE councils have reassured taxpayers that none of their money is invested in Icelandic banks. The collapse of Landsbanki prompted the Local Government Association to revealed that at least 20 councils could lose millions of pounds. But Hampshire County Council, Hart District Council and Basingstoke and Deane Borough Council all stated they had not invested in the banks. Hampshire police also stated it has no money invested.