HC Deb 01 June 1998 vol 313 cc18-9
39. Mr. David Heath (Somerton and Frome)

What recent discussions he has had with the Chancellor of the Exchequer on the financial implications of extending the scrutiny of the National Audit Office to non-departmental public bodies not presently covered. [42028]

Mr. Robert Sheldon (Chairman of the Public Accounts Commission)

The Comptroller and Auditor General has inspection rights in regard to virtually all the 265 non-departmental bodies; however, he is not the auditor of nearly half those bodies, and, in the circumstances, accountability to Parliament is exercised only by his inspection rights. If the Comptroller and Auditor General were to be auditor of those bodies, he would be able to provide a more efficient and effective service to Parliament. The Chairman of the Public Accounts Committee and I met the Chancellor of the Exchequer on 26 March this year, and we raised the possibility of the Comptroller and Auditor General's becoming the auditor of all non-departmental public bodies.

Mr. Heath

I thank the right hon. Gentleman for his reply. He is clearly dealing with the matter, and he clearly agrees with me that there are now gaps between the Audit Commission and the Comptroller and Auditor General in terms of audit. Does he not also agree that, if Ministers cannot abolish quangos, they can at least regulate them properly?

Mr. Sheldon

Of course I agree with the hon. Gentleman. It is a great pity that the European Court of Auditors has access that the Comptroller and Auditor General has not, as that means that the Comptroller and Auditor General cannot undertake the scrutiny that the House has a right to expect.

Mr. Geoffrey Clifton-Brown (Cotswold)

The Chairman of the Public Accounts Commission will recall that I have raised this matter with him before in oral questions, particularly in relation to housing associations. Does he agree that a huge number of non-departmental public bodies are not properly scrutinised and that, therefore, there must be a risk that public money is being ill spent, possibly even fraudulently so? Will he renew his representations to the Chancellor that the Comptroller and Auditor General should have an auditing role over such bodies?

Mr. Sheldon

I fully agree, as £1.2 billion of public money is being spent in that area, and the Comptroller and Auditor General should be able to undertake the sort of examination that the House determines in so many other cases of that sort.