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Representative Church Body – Report 2000

CHURCH OF IRELAND
THE REPRESENTATIVE CHURCH BODY
REPORT 2000

THE REPRESENTATIVE BODY OF THE

OFFICE: 	CHURCH OF IRELAND HOUSE
CHURCH AVENUE
RATHMINES
DUBLIN 6
Telephone No 01-4978422
Facsimile No 01-4978821
Email office@rcbdub.org

CHURCH OF IRELAND

LIBRARY: 	BRAEMOR PARK
RATHGAR
DUBLIN 14
Telephone No 01-4923979
Facsimile No 01-4924770
Email library@ireland.anglican.org
Librarian and Archivist – DR R REFAUSSE

Chairman, Representative Church Body
MOST REV RHA EAMES
Archbishop of Armagh
Committee Chairmen
MR JF RANKIN	[Executive]
MR GC RICHARDS	[Allocations]
MR JRB HEWAT	[Investments]
MR SA GAMBLE	[Property]
MR DG PERRIN	[Stipends]
MRS CH THOMSON	[Library and Archives]
THE HON MR JUSTICE DNO BUDD	[Legal Advisory]
Chief Officer and Secretary
MR RH SHERWOOD

INDEX
Administration Expenses	48
Allocations Committee	11
Allocations Reserve	45
Allocations Recommended	14
Asset Management	18
Audit Committee	28
Auditors’ Report	35
Balance Sheet	36
Bequest, Form of	67
Cash Flow Statement	39
Children’s Allowances	15, 21
Christian Stewardship	15
Church and Graveyard Walls	22
Church of Ireland House (Dublin)	23
Church of Ireland Youth Council	15
Church’s Ministry of Healing	15
Church Plate	24
Clergy Pensions Fund	15
Clergy Remuneration and Benefits	19
Clerical Relief	15
Contributions	63
Covenant Subscriptions	26
Deans of Residences, etc	15
Deeds of Covenant	26
Diocesan and Parochial Funds	47
Donations and Bequests	28, 63
Education – Board of	15, 16
Episcopal Stipends and Expenses	15
Ethical Investments	19
Executive Committee	11
Expenses of Members (Central Committees)	48
General Funds	18, 37, 43
General Synod Funds	47
Gift Aid Scheme	26
Income and Expenditure (General Revenue)	37
Interest – Deposit rates	26
Investment Committee	11
Investments and Markets	17
Investments – Valuations & Returns	18
Irish – Regular Sunday Services in	15
Lambeth Conference Meetings	15
Legal Advisory Committee	12
Library	15,23
Library and Archives Committee	12, 23
Locomotory Allowances	20
Operating Expenses and Financial Review	14
Parochial and Diocesan Funds	47
Pensions & Related Funds	46
Plans for Glebes	22
Policy and Co-ordination	27
Property Committee	11
Property and Trusts	21
RB Unit Trusts	18
Reserves	14, 45
Resolutions recommended to General Synod 1999	29
See Houses	21
St Patrick’s Cathedral, Dublin	15
Specific Trusts	18, 41, 44
Stipends Committee	12
Stipends – Minimum Approved	19, 29
Supplemental Fund	15
Theological College	15, 55
Training of Ordinands	16
Trustee’s Responsibilities (Statement of)	34
University College, Dublin (Chaplaincy)	17
Walls (Church and Graveyard)	22

THE REPRESENTATIVE BODY OF THE CHURCH OF IRELAND
The Representative Body is composed of the following 60 members and the attendance of each at the 4 meetings of the Representative Body held during the year 1999 is denoted by the figure placed before each name:
A	ARCHBISHOPS and BISHOPS: ex officio MEMBERS (12)
4	Most Rev RHA Eames, Archbishop of Armagh
The See House, Cathedral Close, Armagh BT61 7EE
2	Most Rev WNF Empey, Archbishop of Dublin
The See House, 17 Temple Road, Dublin 6
3	Most Rev RL Clarke, Bishop of Meath and Kildare
Bishop’s House, Moyglare, Maynooth, Co Kildare
2	Right Rev BDA Hannon, Bishop of Clogher
The See House, Fivemiletown, Co Tyrone BT75 0QP
3	Right Rev J Mehaffey, Bishop of Derry and Raphoe
The See House, Culmore Road, Londonderry BT48 8JF
1	Right Rev HC Miller, Bishop of Down and Dromore
The See House, 32 Knockdene Park South, Belfast BT5 7AB
3	Right Rev JE Moore, Bishop of Connor
Bishop’s House, 113 Upper Road, Greenisland, Carrickfergus, Co Antrim BT38 8RR
4	Right Rev MHG Mayes, Bishop of Kilmore
The See House, Cavan
4	Right Rev RCA Henderson, Bishop of Tuam
Bishop’s House, Knockglass, Crossmolina, Co Mayo
4	Right Rev JRW Neill, Bishop of Cashel and Ossory
The Palace, Kilkenny
*3	Right Rev WP Colton, Bishop of Cork, Cloyne and Ross 
The Palace, Bishop Street, Cork
3	Right Rev EF Darling, Bishop of Limerick and Killaloe
Bishop’s House, North Circular Road, Limerick
* Elected 1999

B	ELECTED MEMBERS (36)
[Every member elected, otherwise than to a casual vacancy, must retire from office on the First Day of the Third Ordinary Session of the Diocesan Synod which shall be held after his election, in accordance with the provisions of the Constitution, Chapter X, Section 3.]

Cashel
and
Ossory

*1

Very Rev LDA Forrest, The Deanery, Ferns, Co Wexford

| 2 | DRT Bate, 26 Grosvenor Terrace, John’s Hill, Waterford
| 4 | The O’Morchoe, Ardgarry, Gorey, Co Wexford
Kilmore | 3 | Ven WD Johnston, The Rectory, Belturbet, Co Cavan

3

Mrs HR Hicks, Garvary Lodge, 49 Teemore Road, 
Derrylin, Co Fermanagh BT92 9QB

| 4 | Mrs DM Burns, Richmount, Carrickboy, Longford
Cork | 4 | Ven REB White, The Rectory, Carrigaline Road, Douglas, Cork
| 3 | JE Stanley, Scart House, Belgooly, Co Cork
| 2 | Canon JLB Deane, Gartan, Bandon, Co Cork

Derry

3

Ven DS McLean, The Rectory, 80 Northland Road, 
Londonderry BT48 0AL

| 4 | S Gamble, 14 Spruce Road, Dysart, Strabane, Co Tyrone
| 4 | JHD Livingston, 28 Station Road, Garvagh, Co Londonderry

Armagh

4

Ven RG Hoey, The Rectory, 2 Maytown Road, Bessbrook, 
Co Down BT35 7LY

*1

Mrs HM McClenaghan, 43 Markethill Road, Portadown, 
Co Armagh BT62 3SH

| 3 | GA Forbes, 3 Drumnacanvey Road, Gilford, Co Armagh
Clogher | 2 | Ven CT Pringle, Rossorry Rectory, Derrygonnelly Road, Enniskillen, Co Fermanagh
| 2 | JWC Allen, Aughaninch, Newtownbutler, Co Fermanagh
| *1 | WJ Dickson, Carrickanure, Annyalla, Castleblayney, Co Monaghan
Dublin | 1 | Ven GCS Linney, St Paul’s Vicarage, Silchester Road, Glenageary, Co Dublin
| 0 | P Harrison, Holmsdale, Church Road, Greystones, Co Wicklow
| 3 | DG Perrin, Barn Close, Ballybrack Road, Shankill, Co Dublin

Down

3

Very Rev DR Chillingworth, 8 Upper Church Lane, 
Portadown, Craigavon, Co Armagh BT63 5JE

4

JF Rankin, Gort-na-Grian, 111 Ballylesson Road, 
Ballylesson, Belfast 8

2

WL Dermott, 8 Killinchy Road, Comber, 
Newtownards, Co Down BT23 5SW

Connor

*4

Ven AET Harper, St John’s Rectory, 86 Maryville Park, 
Belfast BT9 6LQ

2

HT Morrison, Springhill, 60a Glenavy Road, 
Lisburn, Co Antrim BT28 3UT

1

RH Kay, 19 Upper Station Road, Greenisland, 
Carrickfergus, Co Antrim

Limerick
and
Killaloe

2

Ven MJD Shannon, Kilcolman Rectory, Miltown, Co Kerry

| 4 | WT Morrow, 16 Kilbane, Castletroy, Co Limerick
| 2 | RW Benson, Templehollow, Killaloe, Co Clare
Tuam | 1 | Ven AM Previté, The Rectory, Church Hill, Clifden, Co Galway
| 4 | Mrs CH Thomson, Luimnagh West, Corrandulla, Co Galway
| 1 | DCD O’Hara, Annaghmore, Collooney, Co Sligo

Meath
and
Kildare

2

Ven PHA Lawrence, The Rectory, Eastham Road, Bettystown, 
Co Meath

| 3 | JK Dunne, South Green, Kildare
| 2 | RF Colton, Ballycluff, Tullamore, Co Offaly
*Elected 1999

C	CO-OPTED MEMBERS (12)
2 | JH Stanley, Quinagh, 1 Laurel Lane, Station Road, Craigavad, Co Down
3 | CG Walker, Belmont, 59 Monkstown Road, Blackrock, Co Dublin
0 | TB McCormick, 11 Ontario Terrace, Dublin 6
2 | JR McConnell, 10 Cadogan Park, Belfast BT9 6HG
0 | His Honour JG Buchanan, Castlemount, Castleknock, Co Dublin
0 | The Hon Mr Justice DNO Budd, 5 Rowan Park Avenue, Blackrock, Co Dublin
3 | Professor TD Spearman, St Elmo, Marlborough Road, Glenageary, Co Dublin
4 | JRB Hewat, Rathmichael Lodge, Shankill, Co Dublin
4 | GC Richards, 32 St Alban’s Park, Dublin 4
2 | GW Stirling, Annaghdown Lodge, Corrandulla, Co Galway
4 | The O’Donovan, Hollybrook House, Skibbereen, Co Cork
*0 | R Neill, Killegar, Enniskerry, Co Wicklow
* Elected 1999
The following are the names of those who retire in May 2000:
R Neill
The Hon Mr Justice DNO Budd
GC Richards
JR McConnell
Professor TD Spearman
Note
In accordance with the Charter of Incorporation (1870) the Representative Body is composed of Ex-officio, Elected and Co-opted members.  The Charter provided that the Ex-officio members shall be the Archbishops and Bishops, the Elected members shall consist of one clerical and two lay representatives for each diocese or union of dioceses presided over by one Bishop and that the Co-opted members shall consist of persons equal in number to the number of such dioceses for the time being.  (See also Chapter X of the Constitution).

COMMITTEES OF THE REPRESENTATIVE BODY
Membership details, number of meetings held between 1 January - 31 December 1999 and record of attendances are given hereunder.

EXECUTIVE COMMITTEE
(6 Meetings)
JF Rankin (6)
(Chairman)

| The Archbishop of Armagh | (6) | Ven CT Pringle | (2)
| The Archbishop of Dublin | (4) | Very Rev DR Chillingworth | (5)
| The Bishop of Derry | (3)	* | Ven AET Harper | (2)
| GC Richards | (6) | Mrs CH Thomson | (5)
| JRB Hewat | (6)	* | RH Kay | (1)
* | DG Perrin | (1)	* | HT Morrison | (2)
* | S Gamble | (1) | RW Benson | (4)

allocations COMMITTEE
(3 Meetings)
GC Richards (2)
(Chairman)

| The Archbishop of Armagh | (3) | WL Dermott | (2)
* | JE Stanley | (2) | Very Rev DR Chillingworth | (3)

investment COMMITTEE
(7 Meetings)
*JRB Hewat (1)
(Chairman)

| HT Morrison | (7) | The O’Morchoe | (7)
| JH Stanley | (2) | TB McCormick | (3)
| GW Stirling | (5) | WL Dermott | (6)

property COMMITTEE
(5 Meetings)
*S Gamble (1)
(Chairman)

| RH Kay | (3) | The O’Morchoe | (4)
| DCD O’Hara | (2) | Ven WD Johnston | (5)
| P Harrison | (3) | Ven DS McLean | (3)
| Ven REB White | (4)	* | GA Forbes | (1)

stipends COMMITTEE
(4 Meetings)
DG Perrin (4)
(Chairman)

| The Bishop of Cashel | (4) | Mrs HR Hicks | (1)
| Ven CT Pringle | (3) | Ven DS McLean | (2)
| RW Benson | (3)	* | JR McConnell | (1)
| CG Walker | (4)	* | WT Morrow | (0)

legal advisory COMMITTEE
(0 Meetings)
The Hon Mr Justice DNO Budd (0)
(Chairman)

| JW Wilson | (0) | RLK Mills | (0)
| His Honour JG Buchanan | (0) | RL Nesbitt | (0)
| AC Aston | (0) | LJW MacCann | (0)

library and archives COMMITTEE
(3 Meetings)
Mrs CH Thomson (3)
(Chairman)

| The Bishop of Meath | (3) | Ven REB White | (1)
| The Archbishop of Dublin | (0) | JF Rankin | (3)
Advisory Members | – | WD Linton | (2)
| – | Dr K Milne | (3)
| – | Rev Canon JR Bartlett | (1)
* Elected 1999

“Almighty God, we meet in your presence to exercise stewardship of the resources of this Church.  Grant to us a clear mind and judgement in all things, a willingness to seek your will for the Church and an awareness of the trust and responsibility given to us.  Guide us with your wisdom and lead us in the paths of truth.  This we ask through Jesus Christ, our Lord.  Amen.”

- 	Prayer read at the commencement of all meetings of the Executive Committee.
INTRODUCTION AND SUMMARY
The most important economic events of the final year of the century for the Representative Church Body were
-	a significant but anticipated reduction in income due to the abolition of tax credits and changing patterns of investment management by investment managers as income yields for gross funds dropped to lower levels
-	continued substantial growth in investment capital values due to the strength of the world economy in 1999
-	the decline of the ‘Euro’ currency relative to the strength of sterling and the US$ with corresponding reduction in the value of the Irish currency, which is tied irrevocably to the ‘Euro’ at a fixed rate of exchange
-	a rise in inflation and an upward trend in interest rates which may impact on the long term outlook for domestic economies
Other events of note in 1999 included
-	the re-opening and re-dedication of Church House in Rathmines by the Archbishops of Armagh and Dublin in September following a substantial refit and refurbishment programme
-	an upgrading of the computer technology environment at Church House and a timely delivery of system and programme software solutions by the IT staff to the Year 2000 or Y2K problem
-	a comprehensive revamp of the guidelines and design plans for new glebes by the Property Committee having consulted and received expert advice
-	the adoption of regulations for a formal recognition and regulation of a Part-Time Stipendiary Ministry (as authorised by the General Synod in May 1999).
OPERATING AND FINANCIAL REVIEW 1999
Last year the RCB report concluded that ‘in summary, a sharp downturn in income is almost certain to be experienced, at least in the short term, but in the longer term it is hoped to maintain income at a level commensurate with priorities and responsibilities’.
The measure of this downturn is the sum of the following results for 1999:
•	Income – as anticipated, income is some IR£400,000 or circa 9% less than in 1998.  This reduction would have been greater had the relationship between the Euro and sterling remained constant instead of a widening of the exchange rate differential by 11.86% as compared to 1998.
•	Operating expenses – operating expenses, excluding exceptional items charged to the 1998 accounts, exceeded the previous year by 10% reflecting the fuller impact of the PriceWaterhouse consultancy review in 1997/98 as well as increased professional expenses and depreciation charges (these have been kept to the minimum permitted by the Auditors).
•	Allocations – the amount available for allocations to support ministry and other central commitments is IR£2.720m as against IR£3.067m in 1998 (minus 11.31%) while the sum of the allocations recommended has increased from IR£2.614m in 1999 to IR£2.971m in 2000 (plus 13.66%).
The sum of these results offset by unexpended allocations is a net deficit of IR£215,000, which has been met by transfers from reserves.
•	Reserves – the ‘Allocations Reserve’ is maintained to smooth out the peaks and valleys in income and to protect against serious inability to meet commitments (especially support of ministry) in any period of financial instability.  The target level for this reserve is set at the equivalent of one year’s allocations.  The current level is IR£2.3m or 77% of the set target.
ALLOCATIONS RECOMMENDED TO THE GENERAL SYNOD 2000
•	Allocations recommended this year amount to IR£2.971m (Sterling allocations translated at £1 = IR£1.26678 or IR£1 = £0.7894).  As usual, the major proportion of these allocations is to support the stipendiary ministry and retired clergy/surviving spouses.  The amounts listed hereunder represent the net amounts required to meet current commitments after taking into account income from endowment funds, the episcopal levy and a contribution from the Priorities Fund towards the cost of training ordinands at The Church of Ireland Theological College (see commentary).
•	Recommendations with prior year comparisons are as follows:
| 2000 | 1999 | 2000 | 1999
| IR£ | IR£ | £ | £
GROUP A | | | |
Episcopal Stipends and Expenses | 512,496 | 457,311 | 374,879 | 343,970
less Episcopal Levy | (150,012) | (134,948) | (187,442) | (167,536)
| ________ | ________ | ________ | ________
| 362,484 | 322,363 | 187,437 | 176,434
Deans of Residences/University Chaplains | 44,462 | 54,158 | 117,209 | 96,438
Clerical Relief	- Children’s Allowances | 30,250 | 33,500 | 23,570 | 17,800
- Central Church Fund | - | - | - | -
- Discretionary Grants | 1,500 | 1,500 | 1,500 | 1,500
Stipend Fund | - | - | - | -
St Patrick’s Cathedral, Dublin | 17,423 | 15,750 | - | -
Clergy Endowment Assurance | 1,800 | 2,020 | 2,600 | 2,800
| ________ | ________ | ________ | ________
| 457,919 | 429,291 | 332,316 | 294,972
| ________ | ________ | ________ | ________
GROUP B | | | |
Clergy Pensions Fund - Escalation | 230,731 | 205,431 | 320,157 | 288,040
Supplemental Fund Benefits | | | |
- Retired Clergy, Widows, Spouses | 145,869 | 159,902 | 18,283 | 13,556
Discretionary Grants | | | |
- Retired Clergy | - | - | 9,000 | 8,000
- Surviving Spouses | - | - | 4,500 | 3,500
| ________ | ________ | ________ | ________
| 376,600 | 365,333 | 351,940 | 313,096
| ________ | ________ | ________ | ________
GROUP C | | | |
Training of Ordinands | | | |
- Students’ Fees and Grants (net) | 202,562 | 150,488 | 368 | 400
- Theological College (Operating Costs) | 390,000 | 362,950 | - | -
| ________ | ________ | ________ | ________
| 592,562 | 513,438 | 368 | 400
| ________ | ________ | ________ | ________
GROUP D | | | |
General Synod/Standing Committee | 88,861 | 90,476 | 175,478 | 158,066
Board of Education | 49,830 | 85,859 | 83,223 | 69,469
Church of Ireland Youth Council | 60,000 | 60,000 | 60,000 | 60,000
| ________ | ________ | ________ | ________
| 198,691 | 236,335 | 318,701 | 287,535
| ________ | ________ | ________ | ________
GROUP E | | | |
Christian Stewardship | - | - | 50,000 | 50,000
Lambeth Conference/Regional Meetings | - | 5,000 | - | -
RCB Library | 4,500 | 4,350 | 2,650 | 2,590
The Church’s Ministry of Healing | 1,250 | 1,250 | - | -
Regular Sunday Services in Irish | 300 | 300 | - | -
Marriage Council | 1,000 | - | - | -
| ________ | ________ | ________ | ________
| 7,050 | 10,900 | 52,650 | 52,590
| ________ | ________ | ________ | ________
Summary expressed in Irish pounds as per General Fund Revenue Statement:
| 2000 | 1999
A	-	Maintenance of the Stipendiary Ministry | 878,892 | 758,611
B	-	Retired Clergy and Surviving Spouses | 822,432 | 714,888
C	-	Training of Ordinands | 593,028 | 513,884
D	-	General Synod Activities | 602,417 | 557,352
E	-	Miscellaneous | 73,746 | 69,614
| _________ | _________
| IR£2,970,515 | IR£2,614,349
| ========= | =========
•	Commentary on selected allocations
Standing Committee/Priorities Fund
Meetings between the RCB’s Allocations Committee and representatives of the Standing Committee and its Priorities Fund Committee were held in 1999 in an effort to find common ground and agreement on funding priorities and responsibilities, bearing in mind limited financial resources, trust restrictions, primary commitments and the need for consensus.  The concern for the Standing Committee representatives was expressed as a desire to ‘free up’ the Priorities Fund from core funding commitments and to enable the Fund to be used more selectively for special projects, ministry outreach and fresh initiatives.  The outcome of these discussions has been a measure of agreement on principles relating to the costs of Training of Ordinands and RE Curriculum Development (in the Republic) and in relation to the Safeguarding Trust programme as outlined hereafter.
Training of Ordinands
The RCB will take over full financial responsibility over a phased period of three years (taking back responsibility for an extra IR£35,000 of the budget in the year 2000).  At the end of this period the Priorities Fund will be freed from this area of core funding which, combined with the running costs of the College, is currently costing in the region of IR£600,000 per annum.  Overall costs reflect the current residential model of training as well as the establishment costs of the physical facility and mix of students at any time.
General Synod Board of Education
The budget requests from the Board include new initiatives in the area of Children’s Ministry in the Northern Province and RE Curriculum Development in the Republic of Ireland.  It is understood that the Priorities Fund will undertake to finance the RE Curriculum programme, which is estimated to cost in the region of IR£27,000 in the first year, reducing to IR£23,000 in subsequent years (this is expected to be a finite commitment and project lasting approximately five years).  The RCB has undertaken to finance the printing of work and textbooks subject to recouping costs from sales in due course.
The ongoing costs of the Safeguarding Trust programmes continue to be wholly financed by the RCB.  Estimated costs of IR£21,960 and £7,500 have been included in the education budget for the year 2000.
General Synod/Standing Committee
The allocation under this heading includes the following:
| IR£ | £
Financing of Committees and Boards | 20,561 | 70,410
Subscriptions to Ecumenical and Anglican Organisations | 23,725 | 73,035
Operating and Synod Expenses (including venue) | 10,575 | 32,033
Administration Charges | 34,000 | -
| _______ | _______
| 88,861 | 175,478
| _______ | _______
Other Allocations
The Group A and Group B allocations to support ministry and pensions reflect the first phase of the special increase in stipends approved by the General Synod in 1999 and the consequential impact on pension and national/state insurance contributions.  The second phase of the wholly necessary increased level of stipends due in 2001 will continue to impact on costs of supporting ministry and pensions and to put significant pressures on parochial, diocesan and central funds.
No provision has been made at this stage for any additional funding for achieving parity of pensions for pre-year 2001 pensioners and surviving spouses pending the results of the next triennial actuarial review of the Clergy Pensions Fund (as at 30 September 2000).
The current recommendations include provision for a new full-time chaplaincy at University College, Dublin (which will be partly funded by the College) as well as some provision for capital expenditure on see houses and a house for a chaplain/tutor at the Theological College.  Next year additional costs arising from the decision to build a new see house at Fivemiletown will require additional funding while the General Synod’s Commission on Ministry is seeking funding for financial support of clergy opting out of ministry (irretrievable pastoral breakdown).
INVESTMENTS AND MARKETS
•	The final year of the 20^th century was a good year for investors in international equities and especially for Euro-based investors, who could add significant currency gains (as the US dollar, sterling and the yen rose in value against the Euro) to double digit market gains.  While the year began with concerns over the possibility of global deflation, it ended with concerns that recoveries in European and Pacific economies, combined with continued expansion of the US economy, could re-ignite inflation.
•	Long term interest rates rose in 1999 to reflect the concerns about inflation causing negative returns for the year as a whole.  Returns in the last quarter were better but did not recover earlier losses.
•	Markets continued to be focused on industries and sectors that had ‘growth’ labels attached at the expense of ‘value’ and in this respect the telecommunications and information technology sectors posted extraordinary gains with many stocks in those sectors doubling in value.
•	The UK market delivered a 24% return in sterling terms, which was enhanced to 41% in Euro terms given the marked weakness of the Euro in its first year of existence and reflecting the performance of high tech stocks and some ‘mega’ mergers.
•	The Irish equity market had a dismal year with a capital return of 0.4% and a total return of 2.0%.  This performance reflected the negative sentiment about Irish financial stocks (which cumulatively declined by 22% over the year).  The value of bank shares was hit by unfavourable publicity and fears amongst overseas investors that the Irish economy is ‘overheating’ while domestic fund managers continued to sell Irish equities in an effort to rebalance their portfolios with greater exposure to Euro stocks.  This differential in performance between international equities and Irish equities is hardly justified on valuation grounds or earnings growth differentials but there is a distinct prospect that the Irish market will continue to underperform in 2000.
Valuations of the various portfolios and comparative figures at year end were as follows:
Portfolio | Valuations | Total Return
| 1999 | 1998 |
General Funds | | |
UK and Foreign | £92,240,318 | £82,003,200 | +16.2%
Irish | IR£23,032,151 | IR£24,554,204 | -1.9%
Clergy Pensions Fund | | |
Northern Ireland | £43,727,811 | £38,760,730 | +14.6%
Republic of Ireland | IR£41,236,222 | IR£35,510,810 | +19.3%
Specific Trusts | | |
UK and Foreign | £23,964,737 | £22,490,602 | +12.0%
Irish | IR£40,728,015 | IR£51,195,697 | -9.1%
RB Unit Trust | IR£14,723,708 | IR£14,781,248 | -4.4%
RB General Unit Trust (RI) | IR£40,709,764 | IR£34,433,081 | +7.4%
RB General Unit Trust (NI) | £10,696,231 | £8,574,250 | +11.9%
The underlying market value of the combined funds (expressed in Irish currency) increased over the year from IR£330m (translated at IR£1 = £0.8957) to IR£377m (translated at IR£1 = £0.7894).  This overall gain of circa IR£47m includes substantial but unrealised currency translation gains (expressed in IR£ terms).
The comparable total return performances of relevant equity markets in 1999 was: Ireland 2.0%, UK FT ALL Share 23.5%, UK FT100 20.1%, S&P Composite 20.7%.
•	Asset Management
The General Funds (UK and Foreign), Clergy Pensions Fund (Northern Ireland) and the RB General Unit Trust (NI) are managed from London by Lazard Asset Management.
The Clergy Pensions Fund (Republic of Ireland) is managed by Bank of Ireland Asset Management (BIAM).
All other portfolios are managed by RCB staff reporting to the Investment Committee.  General policy or strategy is to focus on capital and income growth and to seek to optimise the long term total return for the RCB and its trust beneficiaries.
The Investment Committee meets with its external managers on a regular basis to review policy, performance and investment strategy.
•	Ethical Review
During 1999 the Investment Committee carried out a review of investment portfolios in conjunction with its advisors, Lazards and BIAM.  A report was made to the Representative Body and the Executive Committee.
Following the sale of the Marconi element of GEC to British Aerospace, the bulk of the latter’s activities were perceived to be defence-related.  The Investment Committee determined that it would not be consistent with the policy adopted in 1998 to continue to hold British Aerospace shares given that the ‘major proportion of the focus of business activity’ of the company would be in the defence or armaments business (subsequently ordered to be sold).  This did not imply that the Investment Committee had particular reservations or concerns about the legitimacy of British Aerospace business operations and/or the proper provision of defence-related equipment for peacekeeping purposes.
An annual review will be carried out and a report made to the Representative Body in September each year.
CLERGY REMUNERATION AND BENEFITS
•	Minimum Approved Stipends
Since the CRAB report in 1991 minimum stipends have been increased consistently in excess of the annual rate of inflation as measured by the Retail Prices Index in the UK and by the Consumer Price Index in Ireland.  The survey of dioceses in 1997/98 confirmed, however, that stipends had fallen below what could be regarded as the appropriate level and the General Synod approved a recommendation from the RCB that a special increase of £2,400 should be paid in two instalments in addition to the normal percentage increases due in 2000 and 2001.
The following minimum approved stipends are recommended by way of resolution to the General Synod this year:

Current 
(2000)

New 
(2001)

Euro 
equivalent

Northern Ireland | £17,034 | £19,086 | €30,700
Republic of Ireland | IR£17,423 | IR£19,494 | €24,752
Euro equivalent values are based on a Sterling/Euro exchange rate of 0.6217 (variable) and an Irish/Euro exchange rate of 0.787564 (fixed).
The recommended amounts for 2001 include annual percentage increases of 5% in both Northern Ireland and the Republic in addition to the flat rate increase moiety of £1,200.  The annual % adjustments reflect the anticipated level of the across-the-board wage and salary increases in industry and commerce in both jurisdictions.
•	North/South Relativities
In both jurisdictions, the cumulative increases in stipends since CRAB have been more than double the cumulative rate of increase in inflation (stipends have increased by 46.84% in Northern Ireland any by 39.38% in the Republic of Ireland).  During this period the relationship between the different currencies has fluctuated considerably (by more than 30 points) while differences in taxation and national insurance/pay related social insurance add to the difficulty of maintaining relativities.
The Stipends Committee reviews relativities periodically, using the ‘take home pay’ model applied by the CRAB committee which is based on the sum of the values of stipend and allowances as adjusted for expenses, allowances and reliefs for tax purposes, less tax, state insurance contributions and pension contributions.  The outcome of the most recent review in February 2000 indicated a reasonably fair balance of comparability.
•	Locomotory Allowances
The current rates of allowances are based on the official civil/public service pence per mile rates in the separate jurisdictions.  The use of these distinct rates was established in 1991 by the CRAB committee.  Current rates are as follows:
| | Pence
Northern Ireland
Per mile: | first 8,000 miles | 44.80
| over 8,000 miles | 12.60
Republic of Ireland
Per mile: | up to 2,000 miles | 68.20
| 2,001-4,000 miles | 75.79
| 4,001-6,000 miles | 37.84
| 6,001-8,000 miles | 35.31
| 8,001-12,000 miles | 30.26
| over 12,000 miles | 26.27
Although these rates are not strictly comparable, they are relative to the jurisdictions in which they are applied and provide levels of allowances which contribute to the satisfactory degree of overall relativity referred to above.
•	Children’s Allowances Scheme
The level of grant for clergy in Northern Ireland with qualifying children was increased from £200 to £350 to recognise the £1,000 fee for students at third level institutions.
The grant level in the Republic of Ireland remains at IR£200 per student.
•	Commission on Ministry
In December, the Representative Body adopted regulations and a model form of contract for services to recognise and make regulations for the part-time deployment of stipendiary ministry as required under section 4 of the 34^th Canon (as amended by the General Synod in 1999).  The regulations and form of contract are included in the Appendices.
The Commission has also sought the advice of the Representative Body on the formation of a fund or scheme to provide for a form of financial support for clergy moving out of stipendiary ministry as described in the ‘Green Paper’ submitted to the General Synod in 1999.
PROPERTY AND TRUSTS
•	General
A buoyant property market was the catalyst for the continuing heavy level of property activity in 1999.  While all sectors were very active, the residential markets were driven by exceptional demand, low interest rates and a competitive lending climate.  Some sales of glebe property achieved remarkable prices countered in some cases by the high costs of acquiring replacement or additional property for parish use.
•	See Houses
(a)	Clogher – a decision to build a new see house on part of the existing site at Fivemiletown was taken in 1999 and plans are currently being prepared by the Architect, Mr Richard Pierce.  A sub-committee of Mr Sydney Gamble, Mr Robert Kay and Archdeacon Pringle with office support has briefed the Architect and it is hoped to commence the tendering process shortly.
(b)	Cashel and Ossory – the RCB is co-operating with the National Heritage Council in developing a conservation plan for the Palace and its environs.  The Council is interested in acquiring the Palace as a national headquarters and the purpose of the conservation is threefold:
-	to establish the parameters within which the Palace might be adapted for use as the Council’s national headquarters
-	to establish whether the site can sustain the development of an alternative residence for a bishop within its boundaries without compromising its significant heritage elements
-	to assist the RCB in planning for the future of this most important ecclesiastical site
This joint effort is wholly exploratory at this stage and no commitment has been given by either of the parties.  It may, however, be entirely appropriate to consider seriously any proposal which would enable the continuing use of the Palace for purposes connected with the Church, thereby preserving the ecclesiastical links with the building, combined with the prospect of a new see house capable of serving present and future bishops in a location within the existing Cathedral Close complex.
•	Social and Affordable Housing
The Department of the Environment and Local Government in the Republic is seeking the assistance of the churches in identifying church property which is surplus to requirements and could be converted to residential use.  The Department is, in effect, seeking ‘first option’ on any such property for purchase by local authorities subject to agreement on price.
The Department is also seeking assistance in the provision of accommodation for asylum seekers (a pressing national and humanitarian need).
Dioceses have been circulated with details of these requests for assistance.
•	Plans for Glebes
The Property Committee, with expert assistance provided by the Church Commissioners for England, the Diocese of Connor and McDonnell and Dixon (Architects) have produced a comprehensive design guide for new glebes with a view to promoting higher quality buildings capable of meeting the changing needs of the clergy and providing comfortable and convenient homes for them and their families as well as suitable places from which they can carry out their work.
Copies have been circulated to the Diocesan Glebes Committees.
•	Church and Graveyard Walls
Following a serious collapse of portion of a high retaining wall surrounding the churchyard at Clones in County Monaghan, dioceses have been requested to ensure that all such walls be regularly inspected and reported on by suitably qualified persons.  Preventative maintenance is essential to protect parishes from serious financial loss where ageing walls may become susceptible to slippage and ground erosion.  It should be noted that insurance policies are unlikely to cover damage to such walls from subsidence and it is in every parish’s interest to take all practical steps to ensure that any signs of deterioration are discovered at an early stage and before massive and costly damage takes place.  In particular, it is essential to ensure that buttresses and other supporting structures are not interfered with when earthworks take place on adjoining or adjacent building developments.
•	Church of Ireland House, Dublin
The refurbished premises was officially re-opened and re-dedicated by the Archbishops of Armagh and Dublin in September in the presence of members of the Representative Body and the Standing Committee of the General Synod.
The extensive refurbishment programme was carried out over a nine month period during which the staff were relocated to the Royal Hospital, Donnybrook while most of the central church meetings were held in the Church of Ireland College of Education in Rathmines.
•	Trusts
New trusts and additions to existing trusts to a total value of IR£1.595m (€2.025m) were received in 1999.  In the vast majority of cases such endowments represent perpetual trusts, in which case the capital is permanently invested and the income applied to the trust purpose and distributed accordingly.
The most significant addition in 1999 was the Robert and Kezia Stanley Chapman Trust, valued in excess of IR£800,000.  The income on this trust will be applied in the first three years as to one third to CMS, one third to the Housing Fund administered by the Pensions Board and one third to the Theological College Students Grants committee for support of special cases of hardship (confined to married ordinands).
LIBRARY AND ARCHIVES COMMITTEE
•	Library Development
The exterior of the Library building, the forecourt and the surrounding area were inspected by representatives of the Property Committee.  Improvements in the areas of re-decoration and refurbishment were identified and the absence of security lighting and monitoring equipment noted.
•	Readership
The number of reader visits increased in 1999 as did the number of loans of printed books, reflecting, in part, the increase in the number of ordinands in the Theological College.  The demand for archive services continued its upward trend with, once again, more archives and manuscripts being produced for researchers than in any previous year.
Induction sessions were given by the Library staff for new ordinands in the Theological College, for new candidates for the auxiliary ministry, and for lay readers.  In addition to the normal opening hours the Library was open until 7.30 pm on the Friday evenings when the candidates for the auxiliary ministry were resident in the Theological College.
•	Allocations
The General Synod allocated IR3,760 and £2,590 for the purchase of books and IR£600 for binding. This was generously augmented from the following sources:
Armagh diocese (£350); Board of Education (IR£250); Cashel, Ossory, Waterford, Leighlin & Lismore dioceses (IR£75); Clogher diocese (IR£100); Connor Ordination Committee (£400); Cork, Cloyne & Ross dioceses (IR£300); Derry & Raphoe dioceses (£350); Down & Dromore dioceses (£600); Dublin & Glendalough dioceses (IR£250); Ferns diocese (IR£50); Monkstown (Dublin) parish (IR£100); Tuam, Killala & Achonry dioceses (IR£100).
•	Accessions
The collections of printed books were significantly augmented during 1999 by purchase and gift, including important donations from the libraries of the late Canon TF Blennerhassett, Mr S Devenney, the late Revd SP Hilliard, the late Revd CG Mason, and the late Bishop of Kilmore, Dr WG Wilson. The collection of the late Fred Dukes, relating to bell ringing, was bequeathed to the Library and the greater part of the Waterford Cathedral Library was transferred to Braemor Park.
The principal archival accessions were the large body of parish, cathedral and diocesan records which had accumulated in Waterford Cathedral, and records from a further 64 parishes in the Republic of Ireland. In addition, the records of the trustees of St Catherine's parish are an important complement to the extensive archives of the parish which are already in the Library, the papers of the late Fred Dukes provide a wealth of information on Irish bell ringing, while the sermons of Canon Nowlan, Canon Chavasse and Canon Blennerhassett may prove to be valuable sources for the Church of Ireland of the 20th century, especially since so few of their contemporaries appear to have preserved their sermons.
•	Oral Archive
Interviews with the Very Revd WNC Barr, Very Revd VGB Griffin, Very Revd H Leckey, Mrs D McFarlan, Canon A McKelvie, Ven WA Macourt, Canon JJG Mercer and Canon PJ Synnott were completed and the tapes were lodged in the Library.
•	Church Plate
Work continued on the creation of a definitive database of church plate. At the beginning of 1999 approximately seventy per cent of the inventories had been returned and checked. The inventories for the dioceses of Clogher and Kildare has been completed and work is well advanced in most of the other dioceses. However, the response from the dioceses of Ossory, Cashel and Emly, and Killaloe and Kilmacduagh remains disappointing with less than half the inventories for each of these returned.
The Committee, as requested, produced a policy document for the display and disposal of church plate. The work of the RCB Church Plate Sub-Committee and the Church of England General Synod working party, in the 1970s, were considered, and the views of Professor David Spearman, Mr Douglas Bennett (Company of Goldsmiths), Mr Michael Kenny (National Museum), and representatives of the local museums were obtained.
•	Episcopal Portraits
Estimates were obtained for creating a photographic record of the episcopal portrait collections which would satisfy both insurance and academic concerns, and sources of funding for this project are under investigation. The Committee is working on a policy document for the care and custody of the Church's portrait collection.
•	Outreach
Mrs Heather Smith continued to administer the Adult Education Video Library and to edit the monthly video review section in the Church Review.
The fifth volume in the Library's parish register series, Register of the Cathedral Church of St Columb, Derry, 1732-1775, edited by Dr Colin Thomas, University of Ulster, was published. This volume was generously subvented by Derry City Council and the Esme Mitchell Trust.
Dr Refaussé gave lectures on Church of Ireland archives and the resources of the Library to the MA in Local History students in NUI Maynooth, to the Higher Diploma In Archives students in UCD, and, with Dr K Milne, to the second year ordinands in the Theological College.  Dr Hood spoke on the resources of the Library at meetings of the Irish Genealogical Research Society and the Rathmichael Historical Society, and was a speaker at the annual conference of the Society of Archivists; published articles in The Irish at Home and Abroad, Museum Ireland and Irish Archives;  and also attended a training programme in modern archival management in the National Archives, Washington, under the auspices of Ireland's Heritage Preservation Foundation.
The Library hosted four seminars for MA students in modern history in NUI Maynooth, provided an introductory seminar for architects involved in the MA in conservation in UCD, hosted a visit from the readers' services staff of PRONI, and facilitated aspects of the work of the Heritage Council.
A major exhibition entitled “Dublin City Churches Re-Visited” was mounted in the Dublin Civic Museum from late June until the end of October. Based on the book Dublin City Churches of the Church of Ireland by Maurice Craig and the late Henry Wheeler, the exhibition used archives, manuscripts, photographs and printed material from the Library's collections to illustrate the evolution of the parish churches of the inner city.  Some 7,000 people visited the exhibition which was sponsored by the Heritage Council and the Ecclesiastical Insurance Office.  Small exhibitions on religion and food and on the 1927 solar eclipse were mounted in the hall of the Library.
MISCELLANEOUS AND GENERAL
•	Deposit Interest (Rates)
The rates of interest allowed or charged by the Representative Body are linked to the rates ruling from time to time in the Money Market.  The following rates of interest were applied by the Representative Body in respect of the year 1999:
| IR£ | £
| Dr | Cr | Dr | Cr
QUARTER ENDED | % | % | % | %
31 March | 5.00 | 3.38 | 5.75 | 5.25
30 June | 5.00 | 3.10 | 5.25 | 5.00
30 September | 4.75 | 2.95 | 5.00 | 4.65
31 December | 5.00 | 3.20 | 5.50 | 5.00
These rates only apply to revenue balances to credit of diocesan and other accounts and not to permanent capital other than in cases where, for some reason, there may be a delay in making a long term investment (eg proceeds of sales of glebes).  Interest is calculated on daily balances and time weighted.
•	Deeds of Covenant and Gift Aid (Northern Ireland)
The total value of the subscriptions collected under deed of covenant on behalf of parishes in 1999 was £4,198,142 to which the income tax recovered by the Representative Body added £1,253,987 to give a total of £5,452,129 as compared with £5,241,867 in the previous year.
Single cash gifts of £250 or more have qualified for tax relief using the Gift Aid Scheme and a total of 389 gifts was processed by the Representative Body for parishes in 1999.  Gross value of these gifts amounted to £435,721 and the tax recovered amounted to £100,216 as compared to £70,491 in 1998.
In his pre-Budget speech in November, the Chancellor of the Exchequer announced improvements to the Gift Aid scheme and other new tax incentives to encourage giving to charity.  In essence, the Deed of Covenant scheme is to be replaced by a revised Gift Aid scheme with fewer restrictions or limitations than before.  This could have a significant impact on ‘planned giving’ as commonly practised in conjunction with Deeds of Covenant although, as a transitional measure, deeds in existence before April 2000 will remain in force until their expiry dates.
Full details of the revised arrangements and the practical implementation of the Chancellor’s proposals will be communicated to all covenant secretaries/treasurers as soon as they have been made available by the Inland Revenue.
A second series of seminars for parishes was conducted in various locations across Northern Ireland in early 1999 by arrangement with the Inland Revenue.
•	Theological College (Council)
The new Council, accountable to the House of Bishops, has responsibility for the day-to-day management of the College, its property and personnel as well as the academic concerns of the College, the appointment of academic staff and curriculum development.  The Council is representative of the House of Bishops (4 members), the Standing Committee (2 members) and the RCB (2 members) with powers to co-opt up to 3 further members.
The Representative Body has appointed Mr JF Rankin and Archdeacon Lawrence to the Council for a 3-year term commencing 1 September 1999.
•	Policy and Co-ordination Advisory Committee
Following the Price Waterhouse review in 1997/98 this advisory committee was set up to provide a mechanism for better linkages between the RCB and the Standing Committee and to promote better understanding and co-ordination between the two bodies.  Its membership consists of the two Archbishops, the chairmen of the RCB’s Executive, Allocations and Investment Committees, the deputy chairman of the RCB Executive, together with the chairman of the Priorities Fund Committee and two Honorary Secretaries.
The committee met once in 1998, twice in 1999 and in February 2000.  These initial meetings have focused on the relevant roles and responsibilities of each group in relation to present and future commitments, the constraints on both, limited ‘free’ resources as well as the need for co-operation at a strategic level.
•	Commission on Church Buildings
The Commission will submit a Bill to amend the Statute, Chapter I of 1986 consequent upon the resolution passed by the General Synod in 1999 to widen its terms of reference and to enable it to make grants for additional purposes.
The Representative Body reports, in accordance with Standing Order 52 and subject to existing budgetary arrangements, that it has no objection to the proposed amendment.
•	By-Laws of the Representative Body
The Representative Body at its meeting in December 1999 agreed that the times of the meetings of the Representative Body in March and September be changed from 2.30 pm to 2.00 pm.  The formal approval of the General Synod is required for the amendment to By-Law 1.01 and an appropriate resolution will be submitted.
•	Corporate Responsibility
The Representative Body, as a representative trustee for the Church, strives to operate within a framework of sound practice based on principles of integrity and accountability.  Its historic and primary purpose is to support the Church’s ministry with full legal accountability for its governance of property and financial assets.  Over the long term, the Representative Body seeks to maintain stability in its financial planning and to work for improvements in clergy stipends and pensions.
•	Auditors/Audit Committee
The Audit Committee, consisting of four members of the Representative Body appointed by the Executive Committee, meets twice yearly with the external auditors, PricewaterhouseCoopers.
•	Inflation Statistics (5 year review)
Year | UK | Republic of Ireland
(November) | (RP Index) | (CP Index)
1995 | 3.1% | 2.4%
1996 | 2.7% | 1.9%
1997 | 3.7% | 1.6%
1998 | 3.0% | 2.1%
1999 | 1.4% | 2.1%
•	Donations and Bequests
A full list of donations and bequests to the Representative Body for parishes, dioceses and special trusts is given at the end of this report.
•	Capital Taxes
Reference has been made in previous reports to the various taxes, whether on capital or income, which may affect residents in the Republic of Ireland or the United Kingdom.  Because of these taxes a person wishing to contribute to the Church may find it advantageous to do so by means of a capital donation.
•	Form of Bequest
Attention is drawn to the provision contained in the Form of Bequest printed in the final pages of this report, whereby the Representative Body, as Trustee, requests permission to invest in any investments or securities whatsoever in its sole discretion.  Circumstances may alter from time to time and it is desirable that there should be freedom to act in the best interests of the parochial or other fund concerned.
•	Trusts for Graves
The Representative Body does not accept any trust for the provision, maintenance or improvement of a tomb, vault, grave, tombstone or other memorial to a deceased person unless a specific benefit will accrue to the parish concerned.
RESOLUTIONS RECOMMENDED TO THE GENERAL SYNOD
The Representative Body recommends that the following resolutions be adopted by the General Synod:
I. Allocations
That the General Synod hereby authorises the Representative Body to make the following allocations from the balance on the General Funds Revenue Account for the year ended 31 December 1999:
| IR£
Group A – Maintenance of the Stipendiary Ministry | 878,892
Group B – Retired Clergy and Surviving Spouses | 822,432
Group C – Training of Ordinands | 593,028
Group D – General Synod Activities | 602,417
Group E – Miscellaneous Financing | 73,746
| ________
| 2,970,515
| ________
II. Minimum Approved Stipend
That, in accordance with Section 51 (1) of Chapter IV of the Constitution and with effect from 1 January 2001
(a)	no stipend shall be less than £19,086 per annum in Northern Ireland or IR£19,494 per annum in the Republic of Ireland in the case of an Incumbent or a clergyman appointed as Bishop’s Curate under the provisions of Section 42 of Chapter IV or of a Diocesan Curate over the age of 30 years appointed under the provisions of Section 43 of Chapter IV.
(b)	the stipend for a Curate-Assistant shall be in accordance with the following scale:
Year of Service	Annual Stipend
First Year	75.0% of minimum stipend for incumbent
Second Year	77.5%	
Third Year	80.0%	
Fourth Year	82.5%	
Fifth and succeeding Years	85.0%	
III. By-Laws
That, in accordance with the provisions of Section 16 of Chapter X of the Constitution, By-Law 1.01 be amended by the substitution of “2.00 pm” for “2.30 pm” wherever it occurs.