HC Deb 07 July 1977 vol 934 cc1397-8
2. Mr. Hugh Fraser

asked the Chancellor of the Exchequer whether he will now bring forward proposals to require every official body to institute an audit committee of non-executive offices, equivalent to the director level of a limited company, to supervise the preparation of the annual reports of official bodies and whom auditors, Members of Parliament and the general public may approach directly for information concerning the operation, accounting and reporting of official bodies.

The Chief Secretary to the Treasury (Mr. Joel Barnett)

No, Sir. It is difficult to see what further information in addition to what is already available would be provided by this kind of audit committee.

Mr. Fraser

Is the Chief Secretary aware that I am astonished by his reactionary attitude? If there is to be any form of industrial democracy is it not essential that the public and those employed by these official bodies be given full information? Will the Chief Secretary consider this very seriously?

Mr. Barnett

I am not sure why the right hon. Member is astonished that I take a reactionary attitude. Many of my hon. Friends take that as read, but they are as wrong as the hon. Member. I agree with him in the sense that of course we should have the maximum information. However, I do not believe that audit committees would help us in providing the kind of information that both he and I would like to see.

Mr. Clemitson

Does my right hon. Friend agree that considerable concern has been engendered in recent years about the auditing of the accounts of private companies? Will the Government consider setting up a public audit board, along the lines that I suggested in a Ten-Minute Bill some weeks ago, with power to audit the affairs of private companies?

Mr. Barnett

As my hon. Friend and the House will know, in a previous existence I had some experience of this matter. There have been one or two cases of auditors in public companies that have given cause for concern but in the main I have no hesitation in saying that the professional firms of auditors do a first-class job in auditing public and private accounts.