§ 28. Mr. Thorntonasked the President of the Board of Trade if the accounts of the realisation comparies established under the Cotton Industry Finishing Reorganisation Schemes will be available for scrutiny by the Comptroller and Auditor General.
§ Mr. MaudlingNo, Sir. The realisation companies are companies limited by guarantee and have the normal obligation to file accounts with the Registrar of Companies where they are available for public inspection.
§ Mr. ThorntonDoes that Answer mean that there is no accountability to Parliament for the spending of Treasury 566 funds, funds raised by private taxation or levy authorised by this House? Secondly, is the right hon. Gentleman aware that prices from two to three times the grant provided for under the formula in the Order have been agreed?
§ Mr. MaudlingThe position of these realisation companies is that they have a free hand to decide how much they will apply, because the whole of the extra cost of this inducement to close down is borne by the industry. In these circumstances, it is right that they should be treated as companies limited by guarantee. In the case of the Cotton Board, the accounts and records will be available for inspection by the Comptroller and Auditor General.
§ Mr. ThorntonIs it not a fact that prices over and above that provided by Treasury grant are raised by a levy or by private taxation in the industry on firms remaining in the industry? In the case of the private levy authorised by Parliament, ought there not to be some accountability to Parliament for the money so raised?
§ Mr. MaudlingThe position is that there is accountability to Parliament for public money. Where the money is provided not by the public but by the industry, companies' accounts are available for public inspection.