HC Deb 12 February 1986 vol 91 cc940-1
3. Mr. Campbell-Savours

asked the Secretary of State for Trade and Industry what assistance his Department is providing to the inquiry that he has set up into Lloyd's; and if he will make a statement.

Mr. Channon

A small secretariat has been established for the committee of inquiry, headed by a principal in my Department. Accommodation is also being provided within the Department. The committee's need for any further assistance will be kept under review.

Mr. Campbell-Savours

If 25 Lloyd's agencies fail the honest, competent, solvent and fit and proper test for registration under the Lloyd's Act 1982, would it not place a question mark over the individuals who work in those agencies? Should not those individuals be barred from joining other agencies, and thereby secure registration?

Mr. Channon

It is not right for me to comment on individual cases—[HON. MEMBERS: "Why not?"]—because several cases are the subject of investigations. I hope that the committee will report soon in the summer, and if action is necessary we shall certainly take it.

Mr. Yeo

Will my right hon. Friend assure the House that if evidence emerges, either as a result of the inquiry or from other sources, that the present regulatory regime at Lloyd's is unsatisfactory, he will introduce as a matter of urgency legislation to improve that regulatory regime, recognising that the present Financial Services Bill may not be the appropriate vehicle?

Mr. Channon

My hon. Friend is right in saying that the Financial Services Bill is not the appropriate vehicle. He asks a hypothetical question. If the committee were to report in that sense, we should wish to consider its findings as a matter of great urgency, and I should certainly want to establish the most satisfactory regime possible.

Mr. Sedgemore

Will the Secretary of State ensure that the results of his Department's investigation into the Unimar fraud, which spelt doom for Sir Peter Green, a past chairman of Lloyd's, are made available to the inquiry? Will he further ensure that the Bellew Parry and Raven report prepared by Sir Edward Singleton, which is complete, but for some unknown reason has not been published by Lloyd's, will be made available to the inquiry?

Mr. Channon

I shall ensure that the inquiry has all the relevant information.

Mr. Douglas Hogg

Does my right hon. Friend accept that if the Lloyd's Act 1982 had been introduced this year, instead of three years ago, the House would never have accepted the principle of self-regulation? Does he further accept that many Conservative Members and other hon. Members do not accept that self-regulation is appropriate?

Mr. Channon

I am sure my hon. Friend welcomes the fact that we have set up the inquiry, that it will report speedily, and that the House can then consider the appropriate way forward.