§ Mr. CormackTo ask the right hon. Member for Selby, as representing the Church Commissioners if he will make a statement giving details of the steps that have been taken by the commissioners, and are proposed, following the decrease in value of the commissioners' assets.
§ Mr. Michael AlisonThe Commissioners' board of governors has taken a number of steps to strengthen the commissioners' financial management and accountability. The board's actions come as a direct result of the recommendations of the Lambeth report and are part of a vigorous process, overseen by a steering group of the board, to address all the issues raised in it.
— The board has strengthened its relationship with the commissioners' assets committee through general rules under which the assets committee is to work. These rules offer direction and guidance to the assets committee and reinforce the link between the two bodies. They provide, among other things, for the assets committee to review, at least annually with external professional advice, asset allocation and investment performance and for the committee to report quarterly to the board.14W— An Audit Committee has been established. Alan McLintock CA, chairman of the Church's central board of finance, is chairman and Derek Fellows, FIA is a member, neither are commissioners, thus ensuring the independent membership recommended by the Lambeth report. The committee is responsible, among other things, for considering matters relating to the audit and for reviewing the effectiveness of internal management controls, the implementation of investment policies and decisions and accounting policies and practices.— In January the commissioners appointed a new deputy secretary, finance and investment.— The firm of DTZ Debenham Thorpe has been appointed as independent valuer for the commercial property portfolio. The commissioner acknowledge that their asset base is too heavily weighted towards property and their long-term aim is to redress this imbalance. With this in mind, the assets committee's property sub-group is reviewing the commissioners' property interests with the benefit of a recent report on the portfolio from DTZ.— Watsons has been appointed as the commissioners' independent consultant actuaries. It will advise on the commissioners' liabilities for pensions and other expenditure, as well as investment strategy and management. The commissioners and the Church of England pensions board will discuss the future funding of clergy pensions with dioceses in the coming months.— The commissioners have also taken steps, after extensive consultations with dioceses and others, to reduce their expenditure commitments to a sustainable level through a programme of phased cuts in their contributions towards clergy pay and housing. The precise scope and amount of future cuts will be the subject of further consultations.— The commissioners are scrutinising their own administrative costs and have embarked on a review of each of their activities to ensure they are necessary and that they are carried out cost effectively.My hon. Friend will be pleased to know that provisional year end figures for 1993 show an increase of about 10 per cent. in the value of the commissioners' assets.