HL Deb 11 March 1987 vol 485 cc1049-51

2.51 p.m.

Lord Mackie of Benshie

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether there has been any loss of income to the Treasury due to the new ownership of the House of Fraser and Harrods; and whether they intend to take action on the letters from Mr. Rowland to the Secretary of State for Trade and Industry which have been widely circulated in both Houses of Parliament.

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)

My Lords, corporate and personal tax matters are of a confidential nature between those individuals and the Inland Revenue. My right honourable friend the Secretary of State for Trade and Industry is considering Mr Rowland's various letters to him along with other material before him in connection with the acquisition of the House of Fraser by the Al Fayed family.

Lord Mackie of Benshie

My Lords, I thank the Minister for this reply. Is he aware that the question of a takeover of a British company, and whether it now pays tax or whether all the tax disappears abroad in the form of payment for loans, is a matter of public interest? Surely it is in the public interest that he gives an answer to this Question.

Is he also aware that while I hold no brief for Mr. Rowland—he is a man well able to take care of himself in the jungle of the City—it appears that the allegations he has made all round the Houses of Parliament, which a loyal friend described to me as an invitation to sue, has as yet called forth no response? This is surely a matter of some public interest and anxiety.

Lord Lucas of Chilworth

My Lords, the noble Lord, Lord Mackie of Benshie, asked me two questions. In response to the first, perhaps I may say this. British companies themselves have made acquisitions overseas. This gives us an interest in the free flow of international investment. Over the years many of the foreign companies have made a major contribution to the British economy.

On the second point, material that has been, and continues to be, submitted to us is subject to the most careful investigation and inquiry, as my right honourable friend the Secretary of State has a duty to consider these representations. As soon as we have finished those inquiries, my right honourable friend will be in a position to decide a course of action if necessary.

Lord Nugent of Guildford

My Lords, is the noble Lord aware that although there is a Treasury interest in this matter, and that therefore it is in order to have the Question on the Order Paper, the appearance of this unseemly personal vendetta on our Order Paper is very unwelcome?

Lord Lucas of Chilworth

My Lords, this is a matter of opinion for my noble friend Lord Nugent of Guildford. I hear what he says.

Lord Jenkins of Putney

My Lords, will the Minister agree that it is not a question of the unseemly nature of bringing this matter to the Order Paper but of the unseemly nature of what appears to have been happening? In the circumstances, will the Minister publish his reply to Mr. Rowland's somewhat vituperative correspondence?

Lord Lucas of Chilworth

My Lords, again I have to say to the House that if it appears to my right honourable friend the Secretary of State that previously undisclosed material facts in relation to the merger have emerged he has a discretion to make a reference to the MMC; but, more importantly, he has a duty to investigate those matters.

Lord Avebury

My Lords, whatever the noble Lord, Lord Nugent of Guildford, may think of the manner in which Mr. Rowland pursued his case, do not some of the allegations he makes show that criminal conduct was involved in the takeover of Harrods? Is this not a matter for the police rather than the Secretary of State? Has the Secretary of State referred the whole of this correspondence to the police or has he asked the Director of Public Prosecutions to look at it?

Lord Lucas of Chilworth

My Lords, I have already answered that question by saying that inquiries and investigations are being undertaken to examine all the material that has been placed before us from Mr. Rowland's letters and from other areas. When those investigations are completed, my right honourable friend the Secretary of State will be in a position to take a decision as to what further activities, if any, need to take place.

Lord Campbell of Alloway

My Lords, will my noble friend agree, if it is a matter for the police and the Law Officers, that he should not be answering the Question?

Lord Lucas of Chilworth

My Lords, I always try to answer Questions by noble Lords put properly to your Lordships' House.

Lord Mackie of Benshie

My Lords, will the Minister agree—despite the intervention by the noble Lord, Lord Nugent—that this is a matter of public interest? Indeed, while the City of London is under attack and scrutiny, will he agree that further allegations of this kind need to be investigated? Is he further aware that the allegations are against the Department of Trade and Industry? It might therefore be better to have them investigated by an independent tribunal.

Lord Lucas of Chilworth

My Lords, since certain material has been put before my right honourable friend the Secretary of State, he has the statutory duty to consider that material and any representations made to him. That is exactly what he is doing.

Lord John-Mackie

My Lords, has Mr. Rowland been notified that the matter is being investigated? He is still showering us with letters as though he has not been told.

Lord Lucas of Chilworth

My Lords, whether Lonrho showers the noble Lord opposite with letters is a matter between Lonrho and the noble Lord. The company know that the material which the letters contain and other material which has been furnished to us are being inquired into.

Lord Diamond

My Lords, does the scope of the inquiries of the noble Lord's right honourable friend also cover the question of whether this expenditure is allowable as a deduction for income tax purposes?

Lord Lucas of Chilworth

My Lords, all factors relevant to this matter put before my right honourable friend are being inquired into.