HC Deb 15 January 1979 vol 960 cc1298-301
4. Mr. Christopher Price

asked the Secretary of State for Industry when he expects to meet the chairman of the National Enterprise Board.

Mr. Kaufman

My right hon. Friend meets the chairman frequently.

Mr. Price

When my right hon. Friend next meets the chairman, will he discuss with him the allegation made against Allied Investments, one of the NEB's companies, that it paid a £3 million bribe to get a contract in Saudi Arabia? Is my right hon. Friend aware that this allegation has never been denied in terms and that no writ has been issued by Mr. Michael Sinclair or Sir Richard Marsh, the individuals involved, against the publication in which the allegation was made? Should not the matter be cleared up immediately?

Mr. Kaufman

My hon. Friend will be aware that there is a further Question about this matter on the Order Paper, to which we shall be coming. However, if he has any information which he wishes me to consider I shall be ready to receive it and to discuss it with the NEB.

Mr. Michael Marshall

Will the Minister of State say exactly what information is to be made available to the House during Thursday's debate, following his right hon. Friend's reply? Is he aware that at present all that the House has available to it before voting billions of additional pounds to the NEB are an annual report, which is nearly 18 months out of date, and a half-yearly report, both of which are inadequate documents for discussing these huge sums of public expenditure?

Mr. Kaufman

As my right hon. Friend said, these matters will be fully debated on Thursday.

Mr. George

Accepting, as we on the Labour Benches do, the importance of bodies such as the NEB and of public enterprise in the mixed economy, may I ask what is the response of the Department to the draft directive of the European Commission which, if carried into effect, would reduce the flexibility of a Labour Government in the funding of public enterprise?

Mr. Kaufman

I saw that matter referred to in a newspaper today, but it has not yet come my way. I made clear at the Council of Ministers in Brussels last month the Government's insistence that any attempt by the Commission to intervene in our assistance to industry must be firmly based on its powers under the Treaty of Rome and that we would not accept anything else.

Mr. Grylls

Can the Minister assure us that before Thursday's debate on the NEB's extra £4,500 million the Government will give a clear assurance that the Comptroller and Auditor General will be allowed to look at the NEB's books and report confidentially to the Public Accounts Committee?

Mr. Kaufman

That matter will be dealt with in the debate, by which time I hope the hon. Gentleman will have checked and corrected the inaccurate figure that he has just put before the House.

7. Mr. Skinner

asked the Secretary of State for Industry if he has anything further to add to the statement he made,Official Report, 13th November, column 20, regarding the National Enterprise Board and Allied Investments and if he will make a statement.

Mr. Kaufman

Following the exchange in the House on 13th November. the NEB has reffirmed that it has received categorical assurances that no payment has been made directly or indirectly by the Allied medical group to anyone concerned with or acting for it. to obtain the consultancy contract for services to the Saudi Arabian armed forces medical services department. Similar assurances were secured by the NEB prior to its acquisition of shares in the company.

Mr. Skinner

May we now expect a writ to be issued againstPrivate Eyein view of its revelations towards the end of 1978? Can the Minister of State confirm that this whole sleazy episode can do nothing but harm to the National Enterprise Board and the public sector generally? Is he aware, for instance, that the auditors who gave warnings about the accounts were sacked for their financial prudence? Will he give a guarantee that Sir Richard Marsh, who rose to the Tory boardrooms via the Labour movement, will not continue to be a member of the new board?

Mr. Kaufman

The question of writs is not for me or for the NEB, but for any individuals who feel that they have been libelled or slandered. As I pointed out earlier to my hon. Friend the Member for Lewisham, West (Mr. Price), any information that is put to me in connection with this matter will be submitted to the NEB and discussed with it. I have already explained in correspondence to my hon. Friend the Member for Birmingham, Perry Barr (Mr. Rooker) why the auditors were changed.

Mr. Hooker

Following the exchange in the House on 13th November and my right hon. Friend's letter to me, I have found out that the £3 million paid by Allied Investments was admitted by the firm's legal advisers before Mr. Justice Smith on 6th November when they sought and obtained an injunction to prevent the article being published—an injunction which was rescinded later. Allied Investments' legal advisers admitted that £3 million had been paid in bribes. That is the incontrovertible evidence to which my hon. Friend the Member for Lewisham, West (Mr. Price) referred. Will my right hon. Friend now take more positive action on this matter?

Mr. Kaufman

I shall certainly take the matter further with the NEB, as my hon. Friends will expect me to do following the matters that they have raised. I know that my hon. Friend would not expect me to comment further at this stage.