§ Mr. Dalyell
To ask the Secretary of State for the Environment what are the terms of reference given to Deloittes, in respect of the Crown Suppliers; and if he will make a statement.
§ 3. Mr. Chope
Deloitte, Haskins and Sells—now known as Coopers and Lybrand Deloitte—was appointed to provide accountancy advice on the sale of the Crown Suppliers in May 1989. I have put the terms of reference for that work in the Library. In addition it has recently been given a commission based on the expansion of some of that work, but the terms of that commission are commercially confidential.
DELOITTE HASKINS AND SELLS
TERMS OF REFERENCE
Advice on taxation matters relating to the transfer of TCSTo advise on taxation issues which may require special attention in TCS legislation. To examine the tax consequences of any legislation or administrative action (such as incorporation or capital restructuring) proposed before a sale. To advise on the taxation implications of incorporating and selling TCS, having regard to the effect of taxation on direct sale proceeds and on overall Government revenue.
Accountants' ReportTo prepare long form reports on those activities of TCS indentified by the Secretary of State as being businesses to be privatised.In addition to the long form reports, to provide abbreviated reports if required for publication in any documents related to the privatisation of TCS which are to be made available to prequalified potential purchasers. These abbreviated reports will draw upon the long form reports rather than present an audit report of prior years. The abbreviated reports will include a reconciliation between the statutory accounts and the accounts of the businesses which are being sold.
Other mattersTo attend as required various meetings leading up to an invitation to bid. Also as required to carry out further work associated with the invitation document(s), including consideration of any accounting matters which might arise in the course of the sale, and reviewing any financial information which is to be released, together with the issue of formal comfort letters.