§ Mr. Clinton DavisI beg to move amendment No. 16, in page 18, line 8, leave out 'generally accepted practice' and insert
`generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate for insurance companies'.
§ Mr. Deputy SpeakerWith this we may take amendment No. 37, in clause 23, in page 19, line 29, leave out 'generally accepted practice' and insert
'generally accepted accounting concepts, bases and policies or other generally accepted methods appropriate for insurance companies'.
§ Mr. DavisThe purpose of the amendments is to obtain consistency between the Bill and regulation 4 of the Insurance Companies (Accounts and Statements) Regulations 1980. The matter was drawn to my attention by the Consultative Committee of Accountancy Bodies, which was disappointed by the response of the Department to its repeated plea for the avoidance of confusion.
On 18 March a letter from the Department said, in effect, that it had considered the Committee's comments further and was not persuaded that the phrase "generally accepted practice" was likely to lead to confusion. It refused to consider the inclusion in the Bill of the lengthier formula used in the regulations to which I have referred.
I hope that following further representations, and on reflection, the Department has revised its view. I agree with the accountancy bodies that there is some risk of confusion, however slight, and it would be better to avoid that risk by adopting the formula that I have suggested as a result of the representations made to me.
§ Mr. EyreThe amendments have been pressed on the Department in consultations with the industry and accountancy bodies. The hon. Member referred to the Department's being satisfied with the amendments. In fact, my officials have not been persuaded of the need for such changes, because they believe that the shorter formula would be interpreted as meaning the longer.
743 However, I have been impressed by the fluency of the hon. Member for Hackney, Central and the strength of feeling of the industry and the accountancy bodies, and by their firm attachment to the formula included in regulation 4 of the accounts and statements regulations, to which they have become accustomed. On that basis, I am prepared to accept the amendments.
§ Mr. Clinton DavisI am grateful to the Minister, though I expected that response, because he knows that the whole House would have been against him. There would have been a massive revolt on the Conservative Benches, as one can see, and heaven knows what the Social Democrats would have done.
§ Sir Graham PageI do not want to make waves in the flattery with which my hon. Friend the Under-Secretary favoured the hon. Member for Hackney, Central (Mr. Davis), but it was not only the hon. Gentleman's fluency that persuaded the Government to change their mind. The British Insurance Association and the acccountancy bodies pressed the Government. The whole industry was asking for the change, and I am glad that my hon. Friend has given way.
§ Amendment agreed to.