HC Deb 19 April 1951 vol 486 cc2013-6
The Minister of Works (Mr. Stokes)

Sir, with your permission, and the leave of the House, I wish to make a statement about the investigations into the finances of Festival Gardens Ltd.

Messrs. Moores, Carson and Watson, the chartered accountants, who have been investigating the circumstances which caused the financial commitments of Festival Gardens Ltd. to be greatly in excess of the amount estimated last year, have now submitted an interim report which the Board have communicated to me.

This interim report is mainly designed to assist the Board to decide what action may be necessary, and it shows that the reasons behind the excess cost of the work cannot be fully established without extending the field of investigation to cover operations on the site. At my request the Board have taken immediate action to carry out this recommendation. I have also invited them to let me have their considered comments on the interim report with all possible speed.

I am in consultation with the Law Officers on the matter and, subject to their advice, it is my intention to arrange for the results of the investigations to be published together with any comments which the Board may wish to make, as soon as the matter is completed. I am pressing this as quickly as possible.

Mr. Eden

I understand the difficulty, but can the right hon. Gentleman give any indication at all of when it will be possible to make that report available, because the Leader of the House will understand that this is connected with the Bill I mentioned earlier? We should not remain longer than we possibly can help in this position where the Government are illegally spending the taxpayers' money.

Mr. Stokes

I do not think the last remark is quite correct. This is not illegal spending. The House was advised of the position, and the normal course of events will follow. The interim report was only received the day before yesterday. The new accountants, appointed independently of the first report to investigate the site conditions, have been appointed today. Until I have some estimate from them as to the length of time which they think it will take to complete their report, it is not possible to answer the question. I do not want to delay the Bill in the slightest, but it seems to me that it would be better to have both reports before us. Otherwise, it will be a milk and water affair.

Mr. Eden

I assure the right hon. Gentleman that it will not be that, anyway.

Mr. Godfrey Nicholson

Is it not desirable in the interests of financial propriety that the Civil Contingencies Fund should not be used a moment longer than is necessary to finance operations of which this House does not approve?

Mr. Stokes

What we are doing is perfectly legal. We are hurrying on with the Bill as fast as we can.

Mr. Sandys

Since the report which the right hon. Gentleman is to publish deals with the action of the company and the work on the site, would he tell us meanwhile how it is that, since the contract for this job was radically altered last December, which made it obvious that there would be a large increase in expenditure, this House was only informed—and it was wrong information it turned out—at the beginning of March that there would be an increase in expenditure?

Mr. Stokes

That is one of the most difficult points. Until the further investigation has been completed, I think it would be much wiser not to say anything about it.

Mr. Osborne

Can the Minister say whether responsibility will be pinned upon the people at the top, whoever they may be?

Mr. Stokes

I do not know whether they are at the top or the bottom, but I hope it will be pinned upon those responsible.

Mr. Sandys

The right hon. Gentleman said that he was consulting with the Law Officers. Does that mean that he is considering, or the Government are considering, prosecutions?

Mr. Stokes

No. I said that I was discussing with the Law Officers whether the report should be published or not. So far as we have gone, I see no objection, but it would be quite foolish of me to promise to publish the second half of a report which I have not yet even seen. Subject to the opinion of the Law Officers, my intention is to publish it, but, if they advise not, I shall have to think again.

Mr. Geoffrey Hirst

Can the right hon. Gentleman tell us whether, after all this bother and enormous expense, it is going to be open exactly on time?

Mr. Stokes

It is very important that we should be clear about this. There is no danger whatever that the South Bank will not open on time. That is all right. The difficulty is with the Festival Gardens themselves in Battersea Park, and I am now awaiting a final recommendation from the Board as to what should be done. My own view is that it is much more desirable that we should have a really spick and span opening, perhaps subject to a bit of delay, rather than that the thing should go off at half-cock.