§ 4. Mr. David ShawTo ask the Chancellor of the Duchy of Lancaster how many staff his Department s companies investigations department employs; and if he will make a statement on its investigation of financial fraud.
§ The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Francis Maude)The current figure for staff in post in the companies investigation branch of my Department is 53 — a 50 per cent. increase during the past 12 months.
The branch's own investigators are mainly engaged in fact-finding inquiries under section 447 of the Companies Act 1985, but the branch also acts as a point of reference within my Department for non-departmental inspectors appointed to carry out investigations under sections 431, 432, 442, and 446 of the Companies Act 1985.
§ Mr. ShawDoes my hon. Friend agree that in recent years record numbers of overseas banks, financial institutions and companies have come to the City of London to raise funds and that they have received an extremely efficient and effective service from the City? Is he aware that they respect the integrity of the companies that operate in the City, and that that is of immense benefit for invisible exports in our balance of payments?
§ Mr. MaudeMy hon. Friend is absolutely right. Every financial centre depends on maintaining and enhancing its level of business and on showing itself to be a safe and clean place to do business. The City of London is showing itself to be just that.
§ Mr. BerminghamBearing in mind recent history in the City, and as the special fraud squad has been created under the Director of Public Prosecutions, is it not time for closer liaison between the two departments to ensure the speedy prosecution of fraudsters?
§ Mr. MaudeThe hon. Gentleman is right to say that close co-ordination is important. Indeed, that already exists at a hitherto unknown level, with the precise object of ensuring that investigations are completed swiftly. The results are processed quickly so that, if prosecutions are desirable and necessary, they can be got under way at the earliest possible opportunity.
§ Sir Anthony GrantDoes my hon. Friend agree that in the investigation and prosecution of modern, highly sophisticated fraud the authorities are rather like a penny-farthing bumbling about in the jet age? Will he therefore fight the Treasury to ensure that those departments have the latest examples of information technology, which will be an advantage in speeding up the process of justice for both the defence and the prosecution?
§ Mr. MaudeMy hon. Friend is right to say that it is essential that regulators and those concerned with the enforcement of the law are sufficiently well manned and equipped to match the challenges that they face. The serious fraud office, which is now being set up, will operate on a multi-disciplinary basis and a number of professional people will be involved. It is important that it has access to all the equipment and personnel that it needs.