HC Deb 10 April 1922 vol 153 cc21-2
50. Major C. LOWTHER

asked the Under-Secretary of State for Foreign Affairs if he will state why the expenditure of money provided by British taxpayers towards the expenses of the League of Nations is not to be audited in detail by the Comptroller and Auditor-General; why any unexpended balance is not to be surrendered by the League at the end of the financial year; and to whose benefit does any such balance accrue?

Mr. FISHER

His Majesty's Government share of the expenses of the League is provided as a "Grant-in-Aid," and is, therefore, exempt from the ordinary process of auditing by the Comptroller and Auditor-General, whose statutory duty is confined to seeing that the sum charged against the Grant-in-Aid has been paid to the grantee. (See Public Accounts Committee's Return, published in 1911, page 390.) The accounts of the League are audited in detail by the auditors of a Government chosen by the Council from the members of the League. The audit of the accounts for the first budgetary period of the League was, as a matter of fact, carried out by the Comptroller and Auditor - General's Department. The excess of revenue over expenditure in any year is carried forward into the accounts of the League for the ensuing year, and applied in relief of members' contributions for that year.

Sir H. CRAIK

Is it not the case that this arrangement will prevent the Public Accounts Committee of this House investigating these charges? Will it remove all knowledge of the matter from the House of Commons?

Mr. FISHER

I imagine that is so—that is to say, the Grant-in-Aid will be audited by the Government appointed by the Council of the League. That audit, of course, may not always be conducted by the British Government, but, I presume, the result will be common knowledge.

Sir H. CRAIK

But it will be outside the competence of the Public Accounts Committee appointed by this House?

Mr. FISHER

That is so.

Lord R. CECIL

May I ask the right hon. Gentleman whether in that respect there is any difference between this and any other contribution by this country for international purposes, such as that under the Postal Union?

Mr. FISHER

None whatever.

Mr. MacCALLUM SCOTT

Is not that exactly the same position with regard to the grants in the Scottish Universities?

Mr. FISHER

That is so.