On 31 March 2011 the Church Commissioners and I announced that I would purchase a series of 12 paintings by the artist Francisco de Zurbarán, which have hung since 1756 at Auckland Castle (home to the Bishops of Durham), for the price of £15 million to be held in a new charitable trust, the Zurbarán Trust.

This unconditional contract was confirmed by the Asset Committee of the Church Commissioners in March of this year. I have established that the First Estates Commissioner and the Chief Executive of the Church Commissioners have added conditions to the sale of the Zurbaráns, conditions which are insurmountable. These include the grant of planning consent for a new See House, (the plans for which have been abandoned by the Church Commissioners) and the satisfactory grant of planning consent on land which I understand is not even in a development area.

I have no option but to withdraw my offer. This is a great sadness and an embarrassment. I will make the following pledges. The entire £15 million which I have pledged will be used for the people of the North East of England within the Zurbarán Trust, which will continue to function. I further pledge that my wife Jane and I will base ourselves in Bishop Auckland and will remain committed to working to ameliorate the conditions of the people of County Durham. Lastly I will do everything that I can to ensure that the pictures remain at Auckland Castle.

The initiative of the Zurbaráns, although it has come to nothing, underlines my intention to come up to the North East region to work in one of the neediest parts of the country. My vision has been that Auckland Castle will sparkle: loved locally, visited nationally and admired internationally. County Durham has few treasures and these pictures, and the home in which they hang; can act as an encouragement to the area. I see my role as someone who can bring unity, and who can be an encouragement to others.

It is therefore with profound regret that I have to say that my Chairmanship of the Auckland Castle Project is at an end. The project requires around £9m to restore the Castle and an endowment of around £15m to ensure its sustainability. The Church Commissioners have been unable to provide satisfactory terms for the transfer of the Castle. We have been offered a peppercorn rent – but on no more than 60% of the castle, and all the income-bearing parts retained. No offers have been made by the Commissioners adequately to re-house those who would be affected by the change in its use: the problem simply being unaddressed, with the project consortium presumably expected to pick up the issue. Either way, the project is not viable on this basis, despite the many good people who have committed time and professional commitment to this project. The list of those people gives some clue as to the widespread support that there has been for the vision. These excellent people include many in the Church of England, especially the Bishop of London, who has held out a particularly gracious hand of friendship, and the two Archbishops, both of whom have given me private, personal encouragement which I will particularly treasure. The national institutions have been remarkable, in particular; the British Museum, the British Library, the National Gallery and the Victoria and Albert Museum. Neil MacGregor has single-handedly kept me from discouragement, and the same is true of Nicholas Penny and Lynne Brindley. Simon Jenkins, Laurie Magnus, Simon Murray and Jan Bibby of the National Trust have worked tirelessly for a solution. There has been an inspiring wave of support locally: Paul Nicholson, Helen Goodman, Bob McManners and Simon Henig in particular. Jacob Rothschild has given me his friendship and support (together with the Rothschild Foundation); all of us have not been enough to prevail against the obduracy of the Church Commissioners.

I would like to pay tribute to Andreas Whittam Smith, First Estates Commissioner, and Andrew Brown, the Chief Executive of the Church Commissioners, who have remained unfailingly gracious and polite, in distinct contrast to me. I apologise to both of them if I have said anything which is either unfair or unkind.