HC Deb 15 January 1986 vol 89 cc1069-70
14. Mr. Fatchett

asked the Secretary of State for Trade and Industry if he will make a statement on the regulation of Lloyd's.

Mr. Brittan

My hon. and learned Friend, the Parliamentary Under-Secretary of State with responsibility for corporate and consumer affairs, and I dealt with this matter yesterday during the debate on the Second Reading of the Financial Services Bill. I have nothing to add now.

Mr. Fatchett

In the context of the inquiry that the Secretary of State established last week, will he assure the House that the inquiry will be completed before the Financial Services Bill completes its passage through the House? If any recommendations are made by those who carry out the inquiry, will the Committee that considers the Financial Services Bill, or the House, have sufficient time to act upon them and to implement them if necessary?

Mr. Brittan

I cannot give that assurance. That is a matter for Sir Patrick Neill. He has suggested that he would hope to complete the inquiry in the summer. My hon. and learned Friend has said clearly that we do not think that it is at all likely that the Financial Services Bill would be a proper vehicle for statutory intervention, even if Sir Patrick came to the conclusion that further statutory intervention would be appropriate.

Mr. Gould

As the Minister responsible for the Financial Services Bill and for the decision whether Lloyd's should be included within it—the Under-Secretary of State for Trade and Industry, the hon. and learned Member for Folkestone and Hythe (Mr. Howard)—is involved in a clear conflict of interest in this respect, may I ask whether the Secretary of State's attention has been drawn to the Churchill-Butler statement on these matters—a statement of principle that has been endorsed by a long line of Prime Ministers—which reads as follows: It is a principle of public life that Ministers must"—

Mr. Speaker

Order. The hon. Member must paraphrase, not quote.

Mr. Gould

Very well, I will paraphrase the statement of principle, to the effect that where there is a conflict between a Minister's private interests and public responsibilities he must divest himself of those private interests. Given that the Parliamentary Under-Secretary is able to divest himself of his membership of Lloyd's, as I am advised, will the Secretary of State ensure that he either does that or passes the responsibility for the Bill to another Minister?

Mr. Brittan

We have looked into this matter and explained it, and I am perfectly satisfied that my hon. arid learned Friend is well able to discharge his responsibilities with complete propriety.