Hansard

As Tom Arthur has outlined, the money that was raised by the Edinburgh bakers’ widows’ scheme was used to pay annuities to widows of contributors to the fund. In certain circumstances, provision could also be made for elderly members or orphans of members who were considered to be in need.

As we have heard, the promoters considered that there was a need for change, given the restrictions of the 1813 act. With a finite number of potential beneficiaries, the trustees found themselves unable to apply the fund assets in accordance with the spirit of the fund. If nothing were done, the fund assets could become frozen and the trustees would be powerless to make any changes.

The last annuity that was paid under the scheme was in 1997. Since then there have been no qualifying beneficiaries under the fund. However, there are two wives of contributing members who could qualify in future for annuities if they were widowed and, as such, they had a contingent interest in the fund.

As well as the best means of creating the charitable trust, the trustees of the fund also considered how the interests of those individuals were dealt with, and the committee was keen to ensure that they were treated fairly. It was explained, in the promoters’ memorandum:

“Prior to transferring the Fund assets into the Charitable Trust, the Trustees will make a single capital payment to each of the two wives of contributing members. The agreed capital payments have been ring-fenced from the Fund assets. The Bill will give authority to the Trustees to make a single payment to each of the wives who are not—”

and might never become—

“widows ... It is intended that the payments will be made to the wives prior to the dissolution of the Fund.”

The committee was satisfied with the promoters’ account of the steps that had been taken to ensure that the wives in question received equitable payments. We were told that an actuary had calculated capital payments. The wives had been consulted on the capital payments and had agreed to accept them in lieu of potential future annuities to which they might have been entitled as widows, under the terms of the 1813 act.

In conclusion, the committee was content, first, that the interests of the only two individuals who might in future have been affected by the dissolution of the fund have been addressed, and secondly, that the establishment of the charitable trust will provide an appropriate means by which the proceeds that are currently contained in the fund can be used to further the purposes of the incorporation, to the benefit of the public.