HC Deb 22 October 1973 vol 861 cc690-1
23. Mr. Skinner

asked the Secretary of State for Trade and Industry whether he will take the appropriate steps to investigate the affairs of London and County Securities in view of the recent revelations regarding the 1973 annual accounts.

Sir G. Howe

The evidence at present available does not suggest that an investigation would be warranted, but my Department is making further inquiries.

Mr. Skinner

Perhaps I can enlighten the Minister. He ought to refer to the City—[An HON. MEMBER: "Question."] I will get round to that. Mr. Speaker will put me right, not you. Is the Minister aware—does that satisfy you?—

Mr. Speaker

Order. The hon. Member must remember that he is addressing the Chair.

Mr. Skinner

Sometimes you are right, and sometimes you are wrong. On this occasion you are right. Is the Minister aware that I could be helpful in assisting him to give advice on this matter by referring him to the City Press columns of 31st August 1973? Is he aware, for instance, that this is the company which has as one of its directors the Leader of the Liberal Party and that it has, or had, second mortgage rates of interest which could have been included in the "Guinness Book of Records"? Is he also aware that the company has been proved to have been buying its own shares, which, if there had been a foreclosure of loans, would have resulted in its owning itself, which is breaking the law? Is he also aware that after the annual general meeting the auditor of the leading subsidiary resigned? Is this not sufficient information for an investigation to take place in order to clean up the unhealthy face of capitalism?

Sir G. Howe

The facts mentioned by the hon. Member—some of them—are the reasons why further inquiries are being made. As I said in my original reply, the evidence so far available does not suggest that any investigation would be warranted. As regards the hon. Gentleman's reference to second mortgage interest rates, he ought to know that the White Paper produced by the Government a few weeks ago contains clear proposals for extending available protection to the consumer and to all those who are concerned in second mortgage transactions on their own homes. I am glad to know that I shall have the support of the hon. Member for a speedy passage of those proposals into law when the consumer credit Bill is introduced.