HL Deb 22 February 1993 vol 543 cc4-6

2.46 p.m.

The Earl of Shrewsbury asked Her Majesty's Government:

Whether, in the process of reviewing the options with regard to the future status of the Crown Agents, they will ensure that the credibility and integrity worldwide of the Crown Agents are retained.

The Parliamentary Under-Secretary of State, Department of Social Security (Lord Henley)

My Lords, the Government recognise the importance which Crown Agents' clients place on its credibility and integrity. We shall take full account of this in deciding the future status of the Crown Agents.

The Earl of Shrewsbury

My Lords, I am grateful to my noble friend for that reply. Is he aware that the Crown Agents enjoy an exceptional international reputation? Does he agree that the best option in order to retain the substantial benefits that accrue to the UK in terms of international trade and good will would be to find a form of privatisation of the Crown Agents which would preserve intact both the organisation and its reputation for impartiality, free from any direct commercial interest?

Lord Henley

My Lords, of course I recognise the international reputation of the Crown Agents. I should like to repeat the confidence that we in the Government have in them. What I must say to noble Lords is that we have not ruled out any option, as my noble friend Lady Chalker made quite clear in her Written Answer last December (Official Report, 15th December 1992, cols. WA 31–32). Obviously, at the moment I should not like to second-guess any decisions that might be made after the report comes through.

Lord Molloy

My Lords, does the noble Lord agree that the Crown Agents do extraordinarily good work? Can the noble Lord say, as nearly as possible, what is the object of the review of the Crown Agents which is causing some apprehension? Will it in the end enhance the ability of the Crown Agents to improve on the wonderful job that they are doing?

Lord Henley

My Lords, as I hope I made clear, no option has been excluded, including remaining in the public sector or privatisation, but we feel it is important to review the status of all the public sector to ensure that it performs as efficiently as possible.

Lord Geddes

My Lords, when assessing the future status of the Crown Agents will my noble friend ensure that the restrictions placed on it under the 1979 Crown Agents Act are removed? As I understand them, those restrictions are that the Crown Agents cannot enter into business with private entities, nor can it enter into joint ventures other than with ministerial consent.

Lord Henley

My Lords, all I can say is that I hope that my noble friend's remarks will be noted. At the moment I cannot second-guess decisions that will be made. I can only say that all options will be kept open.

Lord Weatherill

My Lords, is the Minister aware that of a sample of £950 million worth of orders placed in the United Kingdom by the Crown Agents, £627 million was placed with suppliers with under 1,000 employees? Of that total, £285 million was placed with suppliers with under 200 employees. Will the noble Lord therefore ensure that, when reviewing the options, the benefits that the Crown Agents bring to small businesses is not overlooked?

Lord Henley

My Lords, certainly the benefits that it can bring to small businesses—and for that matter to industry or business throughout the United Kingdom—are well recognised and certainly will be taken into account.

Lord Morris

My Lords, will my noble friend assure me that if the Crown Agents is privatised in the normal form it will cease to be Crown Agents? Will he consider the option of the formation of a foundation, or indeed the formation of a Royal charter company?

Lord Henley

My Lords, a foundation is certainly an option—as are privatisation or remaining in the public sector. As I have tried to make clear, all options remain open.

Lord Judd

My Lords, will the Minister categorically assure the House that the principal criterion for the future of the Crown Agents must always be its contribution to development as a self-financing and highly efficient professional service and not as a profiteering organisation? Will he assure the House that the Government see the Crown Agents' special Crown status like that of the BBC—as a great asset for Britain—and that the Government will not give in to myopic nonsense from the Treasury or anywhere else?

Lord Henley

My Lords, as I made quite clear, I do not intend to second-guess any decisions that are made. What I do want to make clear is that what we see as most important is that the Crown Agents perform the tasks that it is allotted as efficiently as possible. That is the point of the review. We are not ruling out any option, be it privatisation, remaining in the public sector, or whatever.