Statement re H Corp Consents

RNS Number:5520Y
Guinness Trust(London Fund)
16 February 2006


The Guinness Trust

The Guinness Trust (London Fund) Founded 1890, Registered 1902 #100,000,000 
7.5 per cent. First Mortgage Debenture Stock 2037 ("the Stock")

The Guinness Trust notes the announcement made on 14th February, 2006 to
Parliament by Housing Minister Yvette Cooper that 'The Government will legislate
to modernise the Housing Corporation's decision making arrangements as
necessary, at the earliest opportunity. This will clarify its ability to
delegate decisions from the Board to subcommittees and to officers. The Guinness
Trust also notes the statement made by the Office of the Deputy Prime Minister
to Lenders on 14th February, 2006 that in its view (having taken Counsel's
opinion) security over assets is secure at present. ODPM says it fully
recognises the seriousness of the issue to lenders and the Government has
therefore agreed in principle to legislate and to give retrospective effect to
some historical consents given by officers of the Housing Corporation at the
earliest opportunity.

The Stock is secured by a legal charge granted by The Guinness Trust, which
charges in turn require s9 Housing Act 1996 consents to be valid. Accordingly
The Guinness Trust welcomes the announcement that primary legislation will be
brought forward to deal with the issue that, absent such remedial action, there
are legal risks around the authorisation by the Housing Corporation of the s9
consents, and the associated uncertainty that that poses for the security for
the Stock. The Guinness Trust has also been informed that the Housing
Corporation is taking legal advice on retroactively granting s9 consents to
regularise the situation.

The Guinness Trust will monitor developments in this regard and will make 
further announcements as appropriate.

Contact details for further information:

John Shinton             Royal Bank of Canada Europe Limited
                         Telephone [phone]

Simon Dow                Chief Executive The Guinness Trust
                         Telephone [phone]



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