Educational Trustees Meeting

GFTU Educational Trust

Secretary’s Report.

November-May 2018.

This report incorporates the Education Officers’ Report.

1 Technical, Insurance and Legal. 1.1 As requested at the last Trustees’ meeting, individual indemnity insurance for all Trustees has been increased to £1 million. 1.2 In researching the title deeds prior to the new build, our lawyers, Morrish and Co. discovered that in their view the sale transfer had incorrectly attributed the ownership to the Trust whereas it should have been in the name of two Trustees or more. Attempts to enlist the support of the Charity Commission to make this amendment failed. They would not get involved. I subsequently had discussions with the lawyers who recommended that they pursue the solicitors who acted for us during the sale and the vendor’s solicitors for allowing this error. I decided not to do this in the first instance but to write instead myself to our previous lawyer hoping they could make the amendment without recourse to claims, counter claims and costs. I await their response. 1.3 There have been protracted discussions with our neighbouring farmer about the terms of access to his road during our new build year. These are reaching conclusion and the terms of the attached license agreement are by and large agreed.

1.4 Licenses for the use of our Trust property and land by the GFTU and the GFTU Trading Company have been drafted and precise terms for these will be considered subsequently.

2 New Build. 2.1 Following detailed consideration the GFTU decided to accept the tender from J Tomlinson for the new build work on the site. This is valued at £4.9m. There is additional work also to be undertaken.

2.2 The GFTU have generously agreed to fund the Educational Trust to enable this work to be undertaken.

2.3 This decision has been taken on the basis that the housing development will generate a minimum of £85k a year and the new hotel development some £256k per annum.

2.4 The question of the nursery development was considered in great detail and alternative business plans were requested for office rental, a spa or a conference centre in the new building. This were considered carefully and it was clear that the spa option was the most secure and lucrative. The GFTU did not consider it had the funds for this option and canvassed the affiliated unions to see if any loans were possible. To date around £500k worth of potential loans have been offered without prejudice and subject to detailed terms. The GFTU is keeping the viability of this element of the project under review.