Agenda Item No. 13 Council

Report by Executive Director – Corporate Services to South Ayrshire Council of 16 December 2010

Subject: Educational Trusts and Bequests

1. Purpose of Report

1.1 To authorise the revival and re-organisation of certain educational trusts and bequests held by South Ayrshire Council for the benefit of the community of South Ayrshire.

2. Recommendations

2.1 It is recommended that members:

2.1.1 agree the terms of a scheme as set out in Appendices 1, 2 and 3 of this Report for the administration of each of the John McMaster Bursary Fund; the James Hamilton Bursary and the Oliver Scholarship subject to advertising;

2.1.2 agree the advertising of the said schemes in the local press;

2.1.3 agree that, if no objections are received following advertising of the said schemes, they be signed on behalf of the Council by the Executive Director - Corporate Services;

2.1.4 agree that, if objections are received, they shall be referred back to members for further consideration;

2.1.5 approve the proposals to revive the G F Pollock Fund, Martin Phillips Trust and Fund; and

2.1.6 approve the proposals to transfer the Gavin Memorial Trust Fund, Agnes Smith Campbell Prize and Sarah B Campbell Prize to East Ayrshire Council and the Henry L Russell Fund and William Ainsworth Fund to North Ayrshire Council

3. Background

3.1 The Councillors of South Ayrshire, as the statutory successors to the local burgh, county, district and regional councils, are the trustees of a large number of funds gifted over many years by local benefactors. The purposes of the funds are varied and those to whom the funds are aimed cover different groups of society and geographical parts of South Ayrshire. As trustees the Councillors have a duty to protect and preserve the trust assets, which in the majority of cases is money, and which is invested on behalf of the trust and from which income is generated and dispersed to appropriate beneficiaries.

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3.2 The Council administers approximately 90 trusts and bequests. In previous years the Council attempted by way of petitions to the Court of Session to amalgamate the trusts into three separate trusts. A large amount of information was not known about the trusts and therefore the amalgamation did not succeed. Considerable investigation into the background of the trusts has now been undertaken

4. Considerations

4.1 A large number of trusts and bequests held by the Council are educational prizes and bursaries some of which have not been paid out for some years. These prizes and funds are set out in Appendix 4. A number of the educational prizes have already been revived and work is on-going with officers in Children and Community to complete this task. However, a number of the educational bursaries and prizes require amendment and permission is sought to revive and where necessary amend these trusts as follows:-

4.2 John McMaster Bursary Fund

4.2.1 Mr John McMaster was a banker from Canterbury, who was born in Kirkoswald and lived for a time in Girvan. He died in January 1931 and in his will he bequeathed a sum of money to the Ayrshire Education Authority, of whom South Ayrshire Council are the statutory successors, to set up the ‘The John McMaster Bursaries’. The bursaries were to be awarded to boys, educated at Girvan Secondary School, who had been pupils at the school for not less than two consecutive years immediately prior to the award. Mr McMaster stipulated that the bursaries were to be awarded to boys attending either the University of Glasgow or Edinburgh. If no such candidates were found the income could be applied at the discretion of the education authority in providing bursaries as the authority may determine to those attending a college or institution which provided a thorough course of scientific or technical instruction. The bursaries have not been paid out for many years and the fund currently has a balance of £217,536.58 as at 31 March 2010. The income of the trust varies from year to year dependent upon interest rates. In 2009 the available income was £7000 in 2010 it is £2000.

4.2.2 In November 1931 the Education Committee of Ayrshire County Council set up a scheme for the administration of the bursaries based upon the wishes of Mr McMaster. It is proposed that this scheme, created nearly 80 years ago, is antiquated as it is not open to girls and is restrictive in the first instance to the Universities of Glasgow and Edinburgh. In addition, given the current annual income of the fund the number of awards can either be increased or the value of the annual award increased. The scheme also refers to Girvan Secondary School which is now and fails to include the criteria for the award of educational endowments required by the Education (Scotland) Act 1980.

4.2.3 It is therefore proposed that a new scheme for the administration of the bursaries be created and substituted for the existing scheme. This scheme is set out as Appendix 1 to this report and provides for an increase of the number of awards per year if income allows. The scheme has been discussed with the Head teacher of Girvan Academy.

4.2.4 Before coming into operation the draft scheme requires to be advertised, in terms of the Education (Scotland) Act 1980, in a local newspaper. One month is permitted for objections and proposed amendments. If no objections or proposed amendments are received then members are asked to delegate authority to allow the Executive Director - Corporate Services to sign the

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scheme on their behalf. If objections or proposed amendments are received members shall consider them before finalising the scheme.

4.2.5 However, if objections or proposed amendments are made by:

 the governing body of the endowment to which the scheme relates;

 the Council of any district directly affected by the scheme

 the Education Authority directly affected by the scheme

 Any council tax payers (not being less than twenty) of any district or place directly affected by the scheme

 Any person having a vested interest in the said endowment or any part of it

the authority are required to hold a public local inquiry chaired by an independent party in respect of the objections and proposed amendments.

4.2.6 Following the inquiry members will make the scheme in such form as they consider expedient. They then require to give a copy of the scheme to those who made objections and proposed amendments and give notice that the scheme will come into operation within one month unless an appeal is presented to the Court of Session.

4.3 James Hamilton Bursaries

4.3.1 This fund relates to a bequest to the Provost and Magistrates of by James Hamilton of Mossknowe, Blairmore, Argyllshire of a number of properties in trust, the income of which was to provide five bursaries of £7 per annum tenable for three years at Ayr Academy for three boys and two girls. Over time the properties were sold and the money invested and the fund now stands at £22,495.00 as at 31 March 2010. The bursaries were to be named after Mr Hamilton’s grandfather and known as the ‘James Hamilton Bursaries’.

4.3.2 In 1944 the Director of Education of the Royal Burgh of Ayr and the Rector of Ayr Academy set up a scheme for the award of the bursaries.

4.3.3 It is proposed that a new scheme be looked at for the award of the bursaries to take into account the funds available and the award criteria set out in the Education (Scotland) Act 1980 for educational endowments. This scheme is set out as Appendix 2 and if approved the same procedure as set out for the John McMaster Fund above would require to be followed.

4.4 Oliver Scholarship

4.4.1 This award was bequeathed by Sir Thomas Oliver upon his death in 1942. Sir Thomas was an eminent physician who did a lot of work with the occupational health of industrial workers in Tyneside. The income from the money provided in Sir Thomas’ will was to be applied to a bursary known as the ‘Oliver Scholarship’. The recipient was to be a deserving student of Ayr Academy, leaving the school and going on to study at a University in Scotland for up to three years. The capital of the fund now stands at £7953.04. No scholarship has been paid for many years.

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4.4.2 It is proposed that the ‘Oliver Scholarship’ be revived and awarded to a deserving student of Ayr Academy each year for a period of three years whilst studying at a University in Scotland. The available interest will be divided into three equal awards so at any one time three persons will be receiving the scholarship. It is proposed that a new scheme be looked at for the award of the scholarship to reflect the wishes of Sir Thomas Oliver and the requirements of the Education (Scotland) Act 1980. This scheme is set out as Appendix 3 and if approved the same procedure as set out for the John McMaster Fund above would require to be followed.

4.5 Carrick Academy Fund - it is believed that this fund was set up by a local benefactor, who wished to remain anonymous. It was set up around 1967 and the fund was to be used, at the school’s discretion, for pupils whose parents could not afford to send their children on school trips with their peers. The fund has not been in operation for many years and it is proposed that it now be revived with the co- operation of the Head teacher of Carrick Academy. The fund has a current value of £8,010.89.

4.6 GF Pollock Fund

4.6.1 This fund relates to £1000 which was bequeathed to the School Board of Tarbolton by Mr George F. Pollock of Cairnlea, Hamilton for the purpose of providing a bursary to assist deserving pupils who attended Tarbolton Village School to obtain University education. The fund now has a balance of £4780.37. The bursary has not been paid out for many years.

4.6.2 It is proposed that it be advertised at local secondary schools, and that children in their 5th and 6th secondary year, who have a place to study at University and who attended Tarbolton Primary School, can apply for the bursary for a period of one year and the Executive Director - Children and Community will determine the recipient taking into educational need, diligence, attainment and promise of the potential recipients.

4.7 Martin Phillips Trust Prize Fund - it is believed that this trust, which was transferred from Strathclyde Regional Council, was set up to award prizes for an essay writing competition open to secondary school children in the local area. The trust currently has a value of £3301.75 as at 31 March 2010. It is believed that the competition has not operated for many years and it is proposed that it should be revived and implemented in conjunction with the Executive Director - Children and Community.

4.8 In 1996 at local government re-organisation the Educational Endowments (Strathclyde Region) Transfer Scheme 1996 transferred various educational endowments held by Kyle and Carrick District Council and Strathclyde Regional Council to the new local authorities created under the Local Government (Scotland) Act 1994. Investigations into the Council’s educational endowments has disclosed that the following endowments were erroneously forwarded to South Ayrshire Council. It is recommended that these endowments now be transferred to the correct authorities.

4.9 The following endowments should be sent to East Ayrshire Council:

 Gavin Memorial Trust Fund - Prizes for schools in Dalmellington  Agnes Smith Campbell Prize - Prize for Doon Academy  Sarah B Campbell Prize - Prize for Bellsbank Primary

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4.10 The following endowments should be sent to North Ayrshire Council:

 Henry L Russell Fund - Prize for Kyleshill Primary;  William Ainsworth Fund - Prize for Auchinharvie Academy

5. Resource Implications

5.1 In a number of trusts administered by the Council no disbursement has been made for many years. The revival of the educational trusts will be of benefit to pupils within the schools named in the bequests in recognition of the original trust purposes.

6. Results of Public Consultation

6.1 To be undertaken in accordance with the statutory provisions.

6.2 Consultation has taken place with Councillor Reid, Portfolio Holder for Resource and Performance.

6.3 A briefing session for elected members was held on 24 November 2010.

Background Papers None

Author and Person Valerie Andrews, Head of Legal and Administration, Corporate to Contact Services, County Buildings, Wellington Square, Ayr KA7 1DR – Phone 01292 612466 – E-mail valerie.andrews@south- ayrshire.gov.uk and Claire Neillie, Solicitor, Corporate Services, County Buildings, Wellington Square, Ayr KA71DR- Phone 01292 612441 – Email claire.neillie@south- ayrshire.gov.uk

Date: 7 December 2010

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Appendix 1

South Ayrshire Council Scheme for the award of ‘The John McMaster Bursaries’

The will of the late Mr John McMaster, who was born in Kirkoswald on the 21st June 1841 and who died in Canterbury on the 10th February 1931 provided for the establishment and maintenance of bursaries or scholarships to be known as the ‘John McMaster Bursaries’ by the Education Authority for the County of Ayr. South Ayrshire Council is the statutory successor of the Education Authority for the County of Ayr. A scheme for the operation of said bursaries was set up the Education Authority of Ayr County Council in November 1931. In terms of Section 105 of the Education (Scotland) Act 1980 the scheme below alters the said scheme of November 1931 and the conditions for the award of the said John McMaster Bursaries shall now be as set out below:-

(1) In each year pupils of Girvan Academy in their fifth year and sixth year who have a place to study at any faculty of a University in Scotland can apply for a bursary of such sum as may be determined by South Ayrshire Council’s Executive Director - Corporate Services or her statutory successor to be payable for up to four years of study at a University in Scotland.

(2) The bursaries can be awarded to up to five pupils per year. The number of recipients being at the discretion of the Head teacher of Girvan Academy.

(3) The recipients of the bursaries will have attended Girvan Academy for at least two years prior to applying for the bursary and live in Girvan and the surrounding area when selected to receive the bursary.

(4) The award of the bursaries will be at the discretion of the Head teacher of Girvan Academy having due regard to the educational need, diligence, attainment and promise of the potential recipients.

(5) The continuance of the bursaries during the period of tenure shall be contingent upon the recipients of the bursaries providing satisfactory evidence to South Ayrshire Council or their statutory successors of their continued matriculation at a University in Scotland.

(6) The value of funds available for the bursaries each year will vary in accordance with the amount of income available for distribution and shall be determined by South Ayrshire Council’s Executive Director - Corporate Services or her statutory successor and the amount of the bursary can be increased or decreased at her discretion dependent upon the annual income of the John McMaster Bursary Fund

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Appendix 2

South Ayrshire Council Scheme for the award of ‘The James Hamilton Bursaries’

The will of the late Mr James Hamilton, who resided at Mossknowe, Blairmore, Argyllshire bequeathed a number of properties to the Provost and Magistrates of Ayr to be held in trust for the establishment and maintenance of bursaries or scholarships to be known as the ‘James Hamilton Bursaries’. A scheme for the operation of said bursaries was set up the Provost and Magistrates of the Royal Burgh of Ayr in 1944. South Ayrshire Council are the statutory successors of the Provost and Magistrates of the Royal Burgh of Ayr. In terms of Section 105 of the Education (Scotland) Act 1980 the scheme below alters the said scheme of 1944 and the conditions for the award of the said ‘James Hamilton Bursaries’ shall now be as set out below:-

(1) In each year pupils of Ayr Academy at the end of third year can apply for a bursary of such sum as may be determined by South Ayrshire Council’s Executive Director - Corporate Services or her successor to be payable for up to three years of study whilst the said pupil remains at Ayr Academy.

(2) The bursaries can be awarded to up to two pupils per year. The number of recipients being at the discretion of the Rector of Ayr Academy and the Prize Giving Committee of Ayr Academy.

(3) The award of the bursaries will be at the discretion of the Rector of Ayr Academy and the Prize Giving Committee of Ayr Academy having due regard to the educational need, diligence, attainment and promise of the potential recipients.

(4) The continuance of the bursaries during the recipients’ continued attendance at Ayr Academy will be at the discretion of the Prize Giving Committee of Ayr Academy who can withhold the award if in their view the recipient is no longer deserving having due regard to the educational attainment; behaviour and attendance of the recipient.

(5) The value of funds available for the bursaries each year will vary in accordance with the amount of income available for distribution and shall be determined by South Ayrshire Council’s Executive Director - Corporate Services or her successor and the amount of the bursary can be increased or decreased at her discretion dependent upon the annual income of the John Hamilton Bursary Fund.

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Appendix 3

South Ayrshire Council Scheme for the award of ‘The Oliver Scholarship’

The will of the late Sir Thomas Oliver, who died on 16th May 1942, left £750 to the Provost of Ayr, the Rector of Ayr Academy and the Treasurer of Ayr in trust to apply the annual income from the investment of said sum to provide a bursary or scholarship to be known as the ‘Oliver Scholarship’ to a deserving student of Ayr Academy who wished to study at a University in Scotland. The bursary was to be awarded for a period of three years whilst the recipient remained at University. South Ayrshire Council as the statutory successors of the original trustees wish the conditions for the award of the Oliver Scholarship to be as set out below:-

(1) In each year pupils of Ayr Academy in their fifth year and sixth year who have a place to study at any faculty of a University in Scotland can apply for the Oliver Scholarship which will be of such sum as may be determined by South Ayrshire Council’s Executive Director - Corporate Services or her statutory successor and will be payable for up to three years of study at a University in Scotland.

(2) The Oliver Scholarship can be awarded to one pupil each year for a period of three years and at any given time up to three recipients will be receiving a share of the income of the Oliver Scholarship Fund.

(3) The award of the Oliver Scholarship will be at the discretion of the rector of Ayr Academy and Prize Giving Committee of Ayr Academy having due regard to the educational need, diligence, attainment and promise of the potential recipients.

(4) The continuance of the Oliver Scholarship during the period of award shall be contingent upon the recipients of the Oliver Scholarship providing satisfactory evidence to South Ayrshire Council of their continued matriculation at a University in Scotland.

(5) The value of funds available for the Oliver Scholarship each year will vary in accordance with the amount of income available for distribution and shall be determined by South Ayrshire Council’s Executive Director - Corporate Services or her statutory successor and the amount of the Oliver Scholarship can be increased or decreased at her discretion dependent upon the annual income of the Oliver Scholarship Fund.

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Appendix 4

South Ayrshire Council – Educational Trusts and Prizes Year Ended 31 March 2010

Closing Name of Fund Purpose Balance 31 March 2010

Allan Medal Fund Prize for £416.34

Prize for Dux Boy and Dux Girl in English Baillie John Wood Shields JP £485.49 at Ayr Academy To pay for school trips for children from Carrick Academy Fund £8,010.89 poor families Secretarial Studies Prize at Prestwick Charlotte Anderson Trust £380.63 Academy Prize at Ayr Academy for child who has Clark Achievement Trophy overcome difficult circumstances and £150.12 worked beyond expected capacity Fund for Prizes at Prestwick Academy to David I Penman Prize Fund £111.01 be awarded at discretion of Headteacher Prize for Newton Primary School made in Dr Alexander White Fund £561.91 1947

George McMillan Medal Fund Prize to Dux of Troon Primary School £526.83

Bursary for former pupils of Tarbolton GF Pollock Fund £4,780.37 Primary to go to University Hamilton Trust or ‘James Bursary for pupils of Ayr Academy (up to £22,495.56 Hamilton Bursaries’ five at one time for three years) Ian Carson - Drumbain Mem Prize for Fisherton Primary at discretion of £333.51 Prize Headteacher Prize for best student in 3rd year at Ayr Isabella Laurie Prize Fund £314.88 Academy

James Brown Memorial Medal Prize for Mainholm Academy £56.25

Prize for best student in Maths in 5th and James Brown Memorial Prize th £301.84 6 year at Prestwick Academy Prize for Ayr Academy to be given annually James McLaurin Prize Fund £167.98 at discretion of Headteacher

John Alexander Paterson Prize Prize for Art at Ayr Academy £110.92

Income to be applied each year for the John Don Memorial Trust purchase of a dux medal at Carrick £597.14 Academy

John Hodge Prize Fund Prizes for RE at Coylton Primary £68.62

Bursaries for pupils of Girvan Academy to attend Glasgow and Edinburgh University John McMaster Bursary Fund £217,536.58 for three to five years as per conditions of scheme Income to applied for annual bursary of £5 Margaret Oliver Prize Fund and medal to best student in domestic £1,518.72 science in Ayr Burgh

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Closing Name of Fund Purpose Balance 31 March 2010 Martin Phillips Trust Prize Essay Prize open to all Ayrshire secondary £3,301.75 Fund pupils

McGill Memorial Prize Prize for Newton Primary school £117.68

David McCowan Prize Fund Prize awarded to Ayr Academy in 1906 £194.08

Mcmurray Prize Fund Prize for Dux at £54.30

Miller & Chesney Prize Fund Prize for Carrick Academy £289.80

Monkton Pageant Comm Prize Prize for Monkton Primary £31.18

Prize for best pupil in Science at Ayr Mr & Mrs Naftalin Prize Fund £202.50 Academy Prize to Kingcase Primary for Excellence Mrs J Mair Prize Fund £96.58 in Drawing Bursary for deserving pupils of Ayr Oliver Scholarship Academy attending university. Bursary for £7,953.45 three years Prize for best pupil in Science in senior Prof Purdie Ayr Academy school in Ayr Academy going on to study £1,195.51 science at University Prize for best pupil in Science in senior Prof Purdie Prestwick school in Prestwick Academy going onto to £1,519.23 Academy study science at University

Provost James Smith Prize Prize for Dux at Braehead Primary £1,400.83

Prize for Monkton Primary School for Queen Eliz Coronation Prize £120.35 General Knowledge

Thomas Paterson Award Prizes for schools in Whitletts area £4,722.03

Prize for Academic Excellence in History at Ailsa Cup for History th th £500.00 Prestwick Academy (5 and 6 year)