THE Commonwealth Bank has frozen several of the Bathurst Anglican Diocese’s accounts as it moves in to recover as much of the $36 million owed by the diocese as possible.
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The sale of the Orange Anglican Grammar School and the Macquarie Anglican Grammar School in Dubbo, finalised last Monday, “crystallised” the amount of debt hanging over the head of the troubled diocese, according to Bishop Ian Palmer, but has left it in a “very difficult place”.
The sale of the schools was announced earlier in the year, when it was made clear there would be no impact on Bathurst’s All Saints’ College.
All Saints’ head of college Dr Peter Miller said at the time the 140-year-old college was one of the oldest schools in the Central West and had strong links to the diocese.
“A lot of factors go into a decision like this, but I believe the college’s long history is one of the main reasons this decision will not affect All Saints’,” Dr Miller said.
Bishop Palmer could not be clear about the next step for the diocese after the sale of the schools.
“I am unable to see clearly what the diocese may look like in the future,” he said in a letter read out to parishes across the diocese.
“[The debt] is large and we cannot repay the bank in full.”
Bishop Palmer told the media that individual parishes would be unaffected by the frozen bank accounts and negotiations with the bank were continuing.
In his letter to parishioners, he said “we will need to give financially and sacrificially for the work of the church in this Diocese”.
“At the moment there are some accounts that are frozen. These are affecting myself ... and one or two of my colleagues,” he said.
“It’s affecting things like being able to use a credit card, but it’s not affecting [staff] wages.”
Bishop Palmer said there had been “intense discussion and activity” with the bank since the sale of the two schools last week, but it was unclear how much would be wiped from the debt.
“It’s a little bit difficult to say, we’re still doing our sums. It’s not quite as simple as getting a number and taking it away from the original figure,” he said.
“It’s a fairly urgent situation ... but the important thing is the parishes are continuing to operate as normal.
“That’s what most people are interested in on the ground. What’s happening in the centre is peripheral.”
Potential asset sales were “up in the air”, Bishop Palmer said, but nothing had happened to reverse the decision to retain properties including rectory buildings in Molong and Millthorpe previously earmarked for sale under former Bishop Richard Hurford to recover the debt.
