Church Commissioners Annual General Meeting Report of the Pastoral Committee to the Board of Governors for the year to 31 December 2014 1.0 Introduction 1.1 The Commissioners have a long established role in the legal process for parish reorganisation to help facilitate the best deployment of the Church’s clergy and resources to serve local needs. In particular, they take disputed proposals out of the locality and through their hearings enable a decision to be taken on the contested issues. 1.2 The role is set out in the Mission and Pastoral Measure 2011 which requires all those carrying out functions under it to pay due regard to the furtherance of the mission of the Church of England with mission being defined as “the whole mission of the Church of England, pastoral, evangelistic, social and ecumenical”. 2.0 Role and membership of the Pastoral Committee 2.1 The Board has delegated the Commissioners’ responsibilities for taking forward diocesan proposals for benefice and parish reorganisation and issues affecting churchyards, parsonage property and glebe to the Pastoral Committee. The Committee acts as a tribunal in determining objections made to such proposals. It also oversees the administration of the Commissioners’ liabilities for chancel repairs and loan schemes for clergy housing. 2.2 The Committee’s terms of reference and main objectives are set out in Annex A and its membership in Annex B. The Bishop of Manchester joined the Committee at the beginning of the year having been elected as a Commissioner. The Bishop of Portsmouth left the Committee in April on appointment as a member of the Dioceses Commission, the constitution of which precluded him from also serving on a Commissioners’ Committee. Although he had joined the Committee only at the beginning of 2013, Bishop Christopher had already established himself as a valuable and well respected member. He was replaced by the Bishop of Truro and the Committee also welcomed during the year Miss Susan Pope, the St Alban’s Diocesan Secretary who was -1- nominated as the representative of the Remunerations and Conditions of Service Committee of the Archbishops’ Council. 2.3 The Committee met on only five of its ten scheduled meeting dates in 2014 compared with the nine meetings held in 2013. This reflects the unpredictable nature of its work. The proportion of matters generating objections can vary considerably from year to year and the proportion of those which can be resolved without formal adjudication by the Committee also varies significantly. 3.0 Parish Reorganisation 3.1 This represents the majority of the work carried out under the Committee’s auspices. Dioceses put forward 145 new reorganisation proposals during 2014 and 99 uncompleted cases were brought forward from 2013. Of these, 138 cases were completed during the year and 106 were carried forward into 2015. 3.2 As a result of reorganisation completed during 2014: 4.0 there was a net reduction of 76 benefices reflecting the continuing decline in the number of full-time stipendiary clergy (over the last five years the net reduction is 343, or 4.2%, over ten years it is 651 (8.5%) and over fifteen years 1,017 (12.6%); 23 consecrated churches were closed for regular public worship (among the 102 churches closed in the last five years, the number over ten and fifteen years being 208 and 340 respectively). Accurate figures cannot be given in percentage terms because of uncertainty about the number of new churches being opened but the total number of churches in use is a little below 16,000. We also have no reliable figures concerning the number of new licensed places of worship or those where licences have been withdrawn. The Consideration of Representations 4.1 Representations against the Bishop’s proposals were received in respect of 27 draft Schemes and Orders published during 2014 (19%), in addition to the 25 representation cases brought forward from 2013. During the year 39 cases were completed and 13 were, therefore, carried forward into 2015. -2- 50 45 40 35 30 25 20 15 10 5 0 Number & Percentage of Pastoral Schemes & Orders attracting Representations 2005- 2014 Number Percentage 41 33 29 21 25% 20% 17% 16% 27 25 22 18% 23% 21 19 13% 2005 2006 2007 2008 2009 2010 12% 2011 19% 18 12% 2012 2013 2014 4.2 The Committee considered only five pastoral representation cases during 2014. In three of these cases it decided that the scheme should proceed notwithstanding the representations and one case was referred back to the Bishop for further consideration. In the fifth case the Committee reconsidered a case which it had referred back to the Bishop in 2013: the Bishop had asked the Committee to reconsider the representations in the light of his further comments. The Committee on doing so decided that the Scheme should not be made. 4.3 Twenty-two cases, a higher than usual proportion of those dealt with, were resolved without the need for formal consideration by the Committee. In seventeen of these the representations were withdrawn after explanation or discussion of the proposals with diocesan representatives or in the light of the Bishop’s formal response to the objections. In one case the Bishop withdrew the draft Scheme in light of the representations and in four others amendments were made in response to the objections and the amended Schemes attracted no representations and were duly made. 2010 2011 2012 2013 2014 Scheme to proceed Scheme not to proceed Representations withdrawn Draft amended Draft withdrawn Draft referred back to Bishop 7 1 9 3 4 1 6 0 7 0 4 2 10 0 5 2 3 1 14 0 7 2 1 3 3 1 17 4 1 1 Total cases dealt with 25 19 21 27 27 -3- 4.4 Representors (either in favour of or against diocesan proposals) attended and addressed the Committee in the four new cases heard. Diocesan representatives also attended in all four cases which allowed them to be questioned by the Committee; this contributes significantly to representors’ sense that they have had a fair hearing. 4.5 In two cases, from the dioceses of Rochester and Manchester, which involved the proposed closure of churches for regular public worship, members of the Committee visited the churches concerned before the hearings to help inform its discussions. One of these cases was the one referred back to the Bishop for further consideration. 4.6 Where objections are not supported by the Pastoral Committee and it decides that a Scheme should proceed, the representors may seek Permission to Appeal to the Judicial Committee of the Privy Council. No such applications were made during 2014 but permission was refused in one case where Permission to Appeal had been sought in 2013. Appeals 1984 -2014 Did not proceed 58 Appeal dismissed 5 5 Leave to Appeal refused 1 5.0 Withdrawn by Commissioners Parsonage and Glebe Matters 5.1 Since the devolution of most of their parsonage and glebe administrative function to the dioceses in 2000, the Commissioners’ main role is to act as the upper tier authority (in an equivalent role to the Charity Commission). Transactions which do not meet certain criteria, or where there are objections, must to be referred to them for approval. They also publish the Diocesan Parsonages and Glebe Manual and the Repair of Benefice Buildings Measure Code of Recommended Practice, together with the “Green Guide” Parsonages -4- Design Guide, all of which are statutory guidance to which dioceses must have regard in their work. 6.0 5.2 Six matters were referred to the Commissioners during 2014 because they did not meet the criteria for approval at diocesan level. Two of these were parsonages matters where reports from independent surveyors had not been obtained as parsonage houses were being exchanged for higher value diocesan properties. In a third case an area of non-consecrated churchyard was being disposed of under the New Parishes Measure. Three glebe sales were referred because the purchasers were connected persons. All six transactions were approved. 5.3 Six releases or variations of restrictive covenants on five former parsonage houses and one area of former glebe where the Commissioners were separate covenantees were also referred for approval. In accordance with our usual practice the Commissioners released their covenants in all these cases, even where the covenant with the incumbent or DBF was only to be varied, as they owned no benefitting land. 5.4 The Commissioners have now been asked to approve 269 matters since 2000 which fell outside the standard criteria. Of these, 119 have involved “connected persons”, often a member of the parochial church council. In eight cases the diocese wanted to proceed at other than market value for pastoral reasons and, in nine other cases, the diocese had not obtained a surveyor’s report. The others related to variations or releases of covenants. 5.5 Representations were received against six glebe transactions during the year. In two cases the Committee overruled the objections after a hearing and allowed the sale of an option agreement to proceed. In a third case the representations were withdrawn in light of the diocesan response and a fourth was carried over for adjudication in 2015. In another case a PCC objected to a proposed glebe sale unless a covenant against the erection of agricultural buildings was included. The Diocesan Board of Finance agreed to the inclusion of the covenant and the objection was withdrawn. In the sixth case the incumbent objected because he wished the local church school to acquire the land and building for a new school but withdrew his objection when the Diocesan Board of Education did not support this. Loan Finance for Housing 6.1 The Commissioners now only make new housing loans, on a value linked basis, for clergy spouses affected by marital breakdown but a number of loans made under earlier schemes for assistant clergy and theological colleges remain outstanding. -5- 6.2 A further 14 of the 1,177 loans made under the Value Linked Loan scheme for assistant clergy housing between 1988 and 2008 were redeemed during 2014 on ceasing to be occupied by a qualifying person. This leaves 141 of these loans outstanding. In addition one of the 37 loans made to theological colleges, for housing ordinands and college staff, between 1987 and 1992 was redeemed, leaving 18 outstanding. 6.3 Dioceses and colleges are required to undertake quinquennial inspections of the subject properties and carry out the identified works in order to protect the investment. Repairs may be delegated to parishes but responsibility remains with the dioceses as trustee owners of the properties. We reserve the right to receive an increased share of the sale proceeds if the valuation on sale is depressed by repairs not having been carried out. 6.4 The Commissioners continue to make Value Linked Loans to dioceses to purchase properties for clergy spouses after marital breakdown as a ‘last resort’ when the Bishop has confirmed that all other avenues of support have been explored. The loans are made at an initial interest rate of 4%, increasing with RPI, and dioceses are responsible for the management and maintenance of the properties including quinquennial inspection reports. The maximum loan is currently £150,000. Since 1986 when the scheme began 267 loans, totalling £16.27m have been made. There were no new loans made during 2014, but two such loans were redeemed during the year leaving 89 outstanding. 7.0 Chancel Repairs 7.1 The Commissioners have a whole or partial chancel repair liability for approximately 780 church chancels spread across England. In 2014 the Commissioners incurred net expenditure of £490,000 in respect of some 86 chancel repair projects. The types of repairs were generally consistent with what is to be expected when dealing with older buildings and ranged from minor re-pointing in lime mortar to more substantial projects where the Commissioners funded the replacement of entire roofs. 7.2 An unusual case arose at the Grade I listed church of Averley St Michael, in the diocese of Chelmsford, where the chancel floor began to sink dramatically. The Commissioners have an 81% chancel liability. The floor contains a number of historically interesting ledger stones (flat stones placed over a grave inside a church, usually incised with the name and dates of the deceased) some of which carry memorial brasses. These had been covered by plywood for protection against foot damage and to prevent theft. The floor repair project presented an opportunity to find a better way to protect and display these stones. As the Commissioners’ liability does not extend to works of a purely aesthetic nature, this element of the cost falls to the PCC together with its own 19% chancel repair responsibility. Consequently, a joint venture -6- with the PCC was proposed to stabilise and re-tile the chancel floor and incorporate floor-level cavities to accommodate glass covered display cases with LED lighting to highlight the ledger stones and make them a specific and attractive feature at this church. The project began in November 2014 and is expected to be completed by the end of 2015 at a total cost in the region of £52,000 with the Commissioners’ element being approximately £38,000. 7.3 The Commissioners also have a discretionary power under section 25 of the Cathedrals Measure 1999 to make grants to Deans and Chapters towards their chancel liability expenditure which extends to approximately 200 parish church chancels. These grants are currently at a two-thirds level. In 2014 net grants of approximately £108,000 were made to Cathedral Chapters towards the repair of 18 chancels and towards the cost of insuring those chancels within the Chapters’ responsibility. 7.4 The reduction in the number of lead thefts affecting the Commissioners’ and Chapter chancels continued throughout 2014 probably due at least in part to the Government’s legislation which has made handling stolen lead more difficult. 7.5 The Commissioners continued to benefit from the Listed Places of Worship Grants Scheme, which is calculated on VAT paid on chancel repairs and effectively reduces the Commissioners’ overall costs by 20%. 7.6 Most of the Commissioners’ chancel repair liabilities derive from their former ownership of tithe rent charges which were abolished in return for compensation under the Tithe Act 1936 and which are not affected by the Land Registration Act. However, a significant minority of the liabilities relate to the Commissioners’ ownership of land. Two researchers continue to ascertain the exact boundaries to which the individual land liabilities attach by investigating the Commissioners’ historic records and those in the National Archives at Kew and at County Record Offices. The Commissioners’ Property Investments Team is then able to deal with sales of rural assets on the basis of certainty about any chancel repair liability. 7.7 Registration of the Commissioners’ chancel repair liabilities on affected land has caused difficulties with subsequent disposals. We have, therefore, changed our approach so that instead of registering chancel liability against our land we now liaise with PCCs seeking agreement to the issue of Deeds of Indemnity to them in exchange for them agreeing not to seek to register chancel liability against our land. Such indemnities protect the value of the Commissioners’ assets and PCCs’ financial interests. Most importantly, prospective purchasers of our land are not put off by the appearance of chancel liability registered against the land. -7- 8.0 7.8 During 2014 Lord Avebury (on behalf of the National Secular Society) promoted a Bill in Parliament to abolish chancel repair liability. Staff have participated fully in discussions with Lord Avebury and his colleagues on the question of the Church’s current view if abolition were proposed. The National Church Institutions’ view is that they would be prepared to consider abolition but only on the basis that adequate compensation was paid. 7.9 Lord Avebury’s approach demonstrated that there were still misapprehensions about the law as it stands at present and we have published further advice notes on our website. Fen Chapels Act 1875 8.1 The Church Commissioners have the full repairing and maintenance liability for seven chapels on the Lincolnshire Fens by virtue of the Fen Chapels Act 1875. They are mostly single cell chapels although one, New Bolingbroke, is of the scale and proportions of a Victorian parish church building. Three of the chapels, New Bolingbroke, Carrington and Frithville are within a few miles of each other on the same stretch of rural highway (B1183). 8.2 The Fen Chapel of Eastville St Paul, located 1.5 miles outside of its village and ten miles north-east of Boston, sits in an isolated and wind swept position with two residential properties adjacent (former vicarage and church school). It is grade II listed. The parish ceased using it in 2007 but the Commissioners were unaware that use had ceased or that it was in a poor structural condition because of ground movement. It is one of several church buildings in the benefice apparently unused. 8.3 In October 2012 the Local Authority served notice that the building appeared to be in a dangerous condition. Their concern was that it posed a danger to public safety including to trespassers. Initial attempts to secure authority for demolition under faculty using the Chancellor’s emergency powers in the interests of health and safety failed. In response the Commissioners immediately arranged for the chancel arch to be propped by an extensive scaffolding structure and introduced security and monitoring arrangements. However, further movement left the east wall (ecclesiastical north wall) of the church building facing the highway in imminent danger of collapse; the movement could not be safely arrested or contained. A second phase of scaffolding work to further prop the roof structure to enable it to withstand a collapse of the wall was subsequently undertaken. 8.4 The building was formally closed for public worship under the Mission and Pastoral Measure in March 2014 and in July 2014 the Church Buildings (Uses and Disposals) Committee authorised its demolition following publication of a Scheme which attracted no adverse representations. English Heritage did not object in the circumstances of the case. -8- 9.0 8.5 By the end of 2014 £85,000 had been spent on Eastville St Paul, on works and ongoing security and monitoring equipment to abate the threat to public safety. Just over £110,000 was spent in 2014 on repair and maintenance at the other Fen chapels. 8.6 In 2015 works to New Bolingbroke church are programmed with a budget sum of £61,000. It has a congregation of less than ten people. Training 9.1 The Pastoral Team continued to provide training for diocesan staff and committee members. Fourteen individual training sessions for new members of staff in dioceses carrying out pastoral reorganisation and parsonages and glebe work took place in 2014. In addition, a presentation was made to new Archdeacons at their annual training conference. Staff also attended a meeting of the Canterbury Diocesan Mission and Pastoral Committee and met the archdeacons, senior staff and Committee members in Truro. They also participated in a final day conference in Exeter for three dioceses which had been unable to attend the two national conferences held in 2012. 10.0 Administrative and Staff matters 10.1. The Committee wishes to express its sincere thanks to the small staff team who provide a highly professional level of service to the Committee. Their expertise is well regarded by dioceses who frequently turn to them for advice and assistance in finding solutions to issues in use of the Mission and Pastoral Measure and related legislation. 11.0 Achievements and Future Work 11.1 In its report to the Commissioners’ Annual General Meeting in 2013, the Committee advised that during 2014, in addition to its statutory duties, it expected to: identify in conjunction with the Simplification Group established jointly by the Commissioners and Boards of the Archbishops’ Council the scope for simplifying the procedures in relation to pastoral reorganisation including the Committee’s procedures for considering representations; offer training to senior staff of dioceses in relation to their functions under the Mission and Pastoral Measure and to rural deans and lay chairs in respect to the formulation of deanery plans; and provide induction and training for new Committee members. -9- 11.2 Two members of the Committee were appointed members of the Simplification Group. A series of proposals for simplifying procedures under the Mission and Pastoral Measure and a proposal to remove rights of objection to disposals of glebe land were identified. These proposals were incorporated into the Group’s recommendations which were approved in principle by the General Synod at its February 2015 session. The Committee also appointed a Sub-Committee to consider changes in its procedure regarding public hearings and, in particular, to consider whether these were needed in all cases. The Sub-Committee met three times and obtained Counsel’s opinion on what protocols it should adopt for deciding whether to hold a hearing in a particular case. It hopes to make a recommendation to the full Committee and Board of Governors in 2015 after a further discussion with Counsel. 11.3 In respect of the training objectives, the sessions in Canterbury, Exeter and Truro referred to in 9.1 above took place and the offer of training was promoted to all archdeacons through the new Archdeacons’ Training Advisor which has resulted interest from several dioceses for training sessions during 2015. A training session for members of the Pastoral Committee on the conduct of public hearings was also given by Simon Picken, the QC Commissioner. 11.4 The Committee identifies the following priorities for 2015 in addition to its core activities: 12.0 the development of a new system for public hearings with a prior sifting of cases to reduce the administrative burden on the Church; the continued offer of training to archdeacons and other senior staff; and the development of guidance on deanery plans to accord with the emerging proposals from the Simplification Group. The Report 12.1 The Committee presents this report on its work during 2014 to the Annual General Meeting of the Church Commissioners and invites its consideration. Andrew Mackie Chairman Church House Westminster London SW1P 3AZ 29th May 2015 -10- Annex A CHURCH COMMISSIONERS PASTORAL COMMITTEE TERMS OF REFERENCE Agreed by the Board of Governors on 26 May 2011. 1. The Pastoral Committee is a committee appointed by the Board of Governors to conduct such business as is referred to it under these terms of reference. Membership 2. The Pastoral Committee shall comprise: the Third Church Estates Commissioner (who shall chair the meetings of the Committee); two Diocesan Bishops; four other members of the clergy; four other lay persons; and any such additional members as the Board shall from time to time appoint. A majority of the members of the Committee shall be Commissioners. One member shall be nominated by the Remuneration and Conditions of Service Committee of the Archbishops' Council. Functions 3. The Committee shall be responsible for:(i) Subject to (ii) below, the Commissioners' functions relating to:(a) changes in benefices, parishes, archdeaconries and deaneries; (b) team and group ministries; (c) churches other than churches which have been declared closed for regular public worship (but exercise of the Commissioners’ power under section 57(17) of the Pastoral Measure 1983 to ask the Churches Conservation Trust to provide advice in respect of a church in use whose future is under consideration shall be carried out in conjunction with the Church Buildings (Uses and Disposals) Committee); (d) chancels; -11- (e) churchyards, parsonage houses and other clergy housing, parsonage land diocesan glebe and parish property; and (f) transfers and exchanges of patronage interests. (ii) 4. Any financial matters (including the administration of any schemes of grants or loans) assigned to the Committee by the Board subject to such conditions as the Board may impose. The Committee shall have authority to do and complete all the matters assigned to them under paragraph 3, except the following matters where the Committee shall consider and report to the Board:(i) any matter involving new legislation; (ii) any matters of general policy; and (iii) any other matters where the Committee so wish. 5. The Committee shall submit to the Board each year a report of its work during the year. Quorum 6. The Committee shall have a quorum of four, at least two of whom shall be Commissioners. -12- Pastoral Committee Main Objectives The Pastoral Committee oversees the delivery by the Pastoral Division of its main objectives:(a) to assist the pastoral and property work of dioceses by dealing swiftly, accurately and efficiently with proposals submitted in respect of pastoral reorganisation, clergy housing, glebe and related matters; (b) to provide accurate and appropriate advice to dioceses; (c) when adverse representations are made, to seek to resolve those based on misunderstanding and, if consideration is necessary, to present the Committee with a full, fair and accurate basis for its quasi-judicial decisions; and (d) to carry out these and other departmental functions as economically as is consistent with providing a high quality service to the Church. The Pastoral Committee receives regular progress reports on all aspects of the Division’s work and, subject to rules of delegation laid down by the Board of Governors, deals on the Commissioners’ behalf with representations made with respect to Pastoral Schemes and Orders and parsonage house and glebe and other clergy housing transactions. -13- Annex B Membership of the Pastoral Committee during 2014 Chairman Mr Andrew Mackie, Third Church Estates Commissioner, ex-officio (Chairman) Two Diocesan Bishops + + The Right Reverend Christopher Foster, Bishop of Portsmouth (until April) The Right Reverend David Walker, Bishop of Manchester The Right Reverend Tim Thornton, Bishop of Truro (from October) Four Other Clergy + + The Reverend Stephen Evans The Very Reverend Jonathan Greener, Dean of Wakefield The Venerable Penny Driver, Archdeacon of Westmorland and Furness The Reverend Canon Bob Baker Four Lay Members + + Canon Peter Bruinvels Mrs Julia Flack Mr Simon Picken QC Miss Susan Pope (from October) Notes:All Commissioners on the Committee are members of the Board of Governors + Non-Commissioner members of the Committee -14-