HC Deb 18 June 1948 vol 452 cc876-8

Lords Amendment: In line 8, at end, insert: (2) No person shall be qualified to be appointed an approved auditor under section thirty of the Act of 1896 or under section seventy-two of the Industrial and Provident Societies Act, 1893, unless he is a member of one or more of the following bodies, that is to say,—

Provided that—
  1. (a) the preceding provision shall not affect the qualification of a person who is an approved auditor at the passing of this Act, for the purpose either of his existing appointment or of any subsequent appointment under either of those sections:
  2. (b) notwithstanding that provision, where a person who is not such a member or an approved auditor at the passing of this Act was appointed in accordance with the rules of a registered society for the purposes of 877 the audit of the accounts of the society made in the years nineteen hundred and forty-eight and nineteen hundred and forty-nine and in each subsequent year (if any) as respects which the option conferred by section twenty-six of the Act of 1896 to submit accounts for audit to persons so appointed was exercisable by the society, the Treasury may, if they think fit, appoint him under the said section thirty for the purposes only of audit of the accounts of a society in accordance with whose rules he was appointed as aforesaid; and
  3. (c) notwithstanding that provision, the Treasury may, if they think fit, appoint under the said section thirty a person who is not such a member or an approved auditor at the passing of this Act, if they are satisfied that it is necessary for them to do so for giving effect to the purposes of section fourteen of this Act."

Motion made, and Question proposed, "That this House doth agree with the Lords in the said Amendment."

Mr. Assheton (City of London)

I wonder if the right hon. Gentleman would tell the House the purpose of this Amendment received from another place?

The Financial Secretary to the Treasury (Mr. Glenvil Hall)

The object of the Amendment is to insert the list of bodies who may be appointed auditors of the accounts of the societies affected by this Bill. We dealt with this matter in Committee upstairs and, at that time, it was felt that it would be unwise to insert an Amendment of this sort. We have had another look at it, and now insert a list of those bodies competent to act in this way, with certain provisos which protect the societies concerned if they have auditors of their own who may not be qualified in the sense that these qualifications are necessary. We have also made a third proviso which gives to the Treasury a certain elasticity during the period of transition.

Mr. Assheton

Once the period of transition is over, there will be a restriction to the members of these particular bodies? Is that the case?

Mr. Glenvil Hall

Yes. Quite obviously, as time goes on, and the various institutes and societies are able to provide sufficient qualified men to cover the whole field, I imagine that these appointments will be made almost exclusively from them, although it does not necessarily follow that it will come soon. There is a certain amount of elasticity given to the Treasury to use common sense to prevent unfairness to the society concerned.

Question put, and agreed to.

Remaining Lords Amendments agreed to.