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Strachan Heppell (DHSS) met the chair and general secretary of the Haemophilia Society and assured them that the administrative costs of the 10 million pound ex gratia payment would not have to be paid from the fund or its income.

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Peter Stevens requested a top up payment of £4 million for 2001-02 from the government to meet needs which had been identified in a strategic review of 1999.

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A Department of Health briefing stated that "the Department of Health has strictly observed the independent status of the Macfarlane Trust since it was established" but noted that the Minister for Health had requested two-monthly reports on the Trust's activities.

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Officials recommended that John Moore (Secretary of State for Health and Social Services) meet with the Haemophilia Society so that he could demonstrate that he was personally aware of the Haemophilia Society's campaign for compensation.

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It was reported in "The Northern Echo" that Health Minister Tony Newton said that "although he had sympathy for people infected with the AIDS virus through routine blood transfusion, there were no Government plans for a compensation scheme".

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In a memo to Patricia Hewitt MP, Caroline Flint MP stated that the "present pressure on central budgets" did not provide for an increase in funding to the Macfarlane and Eileen Trusts.

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In a parliamentary written answer, Tony Newton MP stated that "There is no state compensation scheme for those who, like haemophiliacs infected with the AIDS virus, unfortunately suffer adverse effects from their medical treatment."

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In a handwritten note from Jacky Buchan to Caroline Flint it was suggested to reduce running costs to provide more money for support to the Trusts.

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Department of Health officials suggested that an additional £10 million for the Macfarlane Trust might be available as a single payment, rather than as recurrent funding.

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The Macfarlane Trust Newsletter noted that there were ten trustees, six appointed by the Haemophilia Society and four appointed by the Secretary of State for Health.

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In order to increase the level of advice available to the Trustees from the beneficiaries, a general consultative panel was set up.

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From 1990/91 the policy was to restrict grants to "health related" issues.

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A Report by the Department of Health looking into the corporate management of the Macfarlane Trust was published and recommendations were made where necessary.

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The Partnership Sub-Group of the Macfarlane Trust first met in May 1999, having been created to meet recommendations from the Strategic Review: Final Report on the Macfarlane Trust Strategic Review.

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The Macfarlane Trust made proposals to revise the structure of grant payments. This included the requirement of a beneficiary to have a "need". The trustees interpreted "need" as "financially needy".

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Christopher FitzGerald stated in a meeting with the Department of Health that unless more money were given, the Trust could not meet its objectives adequately.

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In a report on the Grant Making Procedures of the Macfarlane Trust, it was identified that changes in funding was necessary; and that the Trust's application forms and literature "should be clear and user friendly and should include...what the trust will and will not support" and include "any upper or lower limits on grant size".

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The Report on the Grant Making Procedures of the Macfarlane Trust noted the Trust was least compliant with that guidance in monitoring and evaluation.

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The NSSC (which included the Chairman and four trustees) met every six weeks and replaced allocation meetings, which used to be where trustees met and allocated grants.

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The NSSC, which made the more difficult decisions on single grants, was said on external review to be an improvement in process.

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