§ 39. Mr. George Cunninghamasked the Secretary of State for Foreign and Commonwealth Affairs what are the rules relating to taking up of appointments by former members of the staff of the Crown Agents in commercial companies.
§ Lord BalnielI have been asked to reply.
The rules follow those applied to civil servants.
§ Mr. CunninghamWill the Minister confirm that Mr. Alan Challis was, until the last day of October this year, Director of Finance of the Crown Agents and from 1st November this year is the Deputy Chairman of the First National Finance Corporation? Will he also confirm that the Crown Agents held, before that date and now, a large holding of First National stock amounting, in June, to 10,622,000 shares and now amounting to about 8½ per cent. of the stock of First National? Does the Minister agree that it was the job of this man to put that money in that place or somewhere else, and in the light of these facts will the Minister responsible make a statement to the House about this case?
§ Lord BalnielI can confirm the position held by Mr. Challis. The hon. Member is implying that there is a conflict of loyalties here. The Chairman of the Crown Agents has reported to the Minister that he was satisfied that the relationship between the Crown Agents and the FNFC and between Mr. Challis and the FNFC were not incompatible with his holding this appointment. On the scale of the Crown Agents' investment in the FNFC, Crown Agents hold about 6 per cent. of the equity as a routine investment.
§ Mrs. HartIs it right that rules applying to civil servants should be applied in quite this way to staff of the Crown Agents? Civil servants are not normally asked to be directors of companies holding equity shares, and there is therefore an anomaly here which, frankly, the normal rules do not cover. Will the right hon. Gentleman look at this and consider what special rules now need to be applied to members of the Crown Agents' staff.
§ Lord BalnielI can certainly look at the rules. The hon. Lady will notice that I said that the rules follow those applied to civil servants. The basis of those rules can be found in the July 1937 White Paper on the acceptance of business appointments by officers of the Crown Service. I shall certainly look at this again, if that is regarded as being desirable, but the rules are long established and well respected.
§ Mr. CunninghamThe Minister referred to a 6 per cent. holding by the Crown Agents. That is a much lower figure than the one previously given by a Minister in this House.
§ Lord BalnielThe information at my disposal is that the Crown Agents hold about 6 per cent. of the equity as a routine investment. They also deal with the FNFC in the money market, as they do with many other banks and finance houses. That is the figure I have been given, and I believe it to be correct.