Published: Wednesday, 21st July, 2010 10:04am

Council charges are 'absolutely ridiculous'

by Ally McGilvray

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CASH-STRAPPED council chiefs charged the community five times more than they earned in interest for looking after their cash last year, we can reveal.

Scottish Borders Council is responsible for managing the region's eight Common Good funds - Galashiels, Selkirk, Lauder, Peebles, Jedburgh, Kelso, Hawick and Duns - which, between them, have around £2.2million in the bank.

Last year, they raised a total of £6796.88 in interest. Their total income, for the year up to March 31, 2010, was £27,851.21. However, for administering the funds, the local authority charged them a total of £29.987.

The Border Telegraph obtained the figures following a Freedom of Information request to the local authority. It followed concerns that thousands of pounds of community cash was being siphoned away from good causes because of "morally wrong" council charges.

All eight of the region's Common Good funds were charged more in fees than they earned in interest last year. This year, some funds admitted they have been forced to withhold payouts to community groups because, they claim, the charges are too high.

The fund which held the least amount of money, Galashiels (£26,123) was charged £1421 in fees - despite only raising £97 in interest; while Duns (£27,485), which raised just over a pound more in interest, was charged 14 times less - £106.

Meanwhile, the fund which held most money, Jedburgh (£645,972), raised £16,580.95 in interest and was charged fees of £3909; while Hawick (£616,231), which only raised £4952.31 interest, was charged three times as much - £12,985.

The council confirmed it was also responsible for managing almost 300 other trust funds, including a number of bequests, which between them held more than £1.4 million. They raised more than £23,000 in interest last year. However, the council did not charge them any fees.

Of these, the fund with the most money was, according to the council, the William Hill Trust Number Three which had £168.709.14 in the bank. However, the fund which earned the most interest was the Gibson Park Trust which, despite only having £26,770.67 in the bank, banked £2065.88 last year.

The local authority launched a review of the charges following concerns. Speaking at the time, former Scottish Borders Council leader Drew Tulley said if they can't be axed, the funds should be removed from the control of the council altogether.

This week we contacted the council to ask what councillors made up the group and what they had decided? We also asked why the council charges Common Good funds when it does not charge other funds it administers, as well as why it charges some funds more than others, when they might not have as much as others or earned less?

However, despite contacting the local authority's press office on Monday morning, a spokeswoman for the council said she would be unable to respond to our questions until today (Wednesday) at the earliest.

Local financial advisor Bill White, chairman of Galashiels and Langlee Community Council, said: "It is absolutely ridiculous. We are being charged more by the council than the Galashiels Common Good fund, for example, is generating in interest.

"It is no wonder nobody is paying money in to these funds any more and that is why no money is being paid out this year. The system definitely needs a radical shake-up."