§ Mr. George Cunninghamasked the Minister of Overseas Development if she will make a statement on the future rôle and structure of the Crown Agents.
§ Mrs. HartThe House will recall that in 1970 I instituted inquiries into the constitutional relationship of the Crown Agents. The right hon. Member for Bridlington (Mr. Wood) took the matter further and appointed the Stevenson Committee. In the light of my own further study, I would like to tell the House what I now propose.
As background, I emphasise that the Crown Agents have a long history of efficient and comprehensive services to countries overseas in the fields of procurement, inspection, engineering, finance and a variety of personnel services. During the nineteenth century and for most of this one they acted essentially for the Colonies who were, of course, within the responsibility of the Secretary of State. In the last 15–20 years they have acted mainly for independent countries, mostly members of the Commonwealth, and also for 380W the remaining dependent territories. For a historical perspective I recommend the 1909 Report of the House of Commons Committee chaired by Colonel Seely, the Parliamentary Under-Secretary of State (Cd. 4473).
The services they provide are excellent, and are very much appreciated by their overseas principals. They have an efficient and dedicated staff. It is important that their relationship of confidence with their overseas principals remains undisturbed, and that the customary standards of commercial confidentiality will continue to be observed in their transactions. This was the right hon. Gentleman's conclusion, and it is mine also.
Procurement this year is running at the rate of about £160 million annually. Deposits from principals are about £300 million and funds managed on their behalf are valued at about £850 million. These figures give some indication of the scale of the work of Crown Agents. In recent years, as is, I think, well known, they have extended their financial operations on their own account with the objective of building up their reserves. Some of these, particularly those concerned with property, have become the subject of public comment. Given the ultimate responsibility of the Crown Agents to Government, I have therefore decided to make changes in their structure which will not however affect their relationship with overseas principals.
Sir Claude Hayes, who is now and has for some time been the sole Crown Agent, has carried an extremely heavy burden. He would normally have retired earlier this year and I am grateful to him for his willingness to continue in office for a little while longer In order to ease the transition to the new arrangements I now propose.
I am appointing a Board of Crown Agents which will have a full-time chairman and will include up to seven part-time members. I shall announce names shortly.
The board will be required to transmit to me an annual report and accounts which I propose to make available to Parliament. The board will be responsible to me for the organisation and general administration of the Crown Agents' business and I reserve the right to give them directives from time to time.
381WI shall of course continue the practice of non-intervention in the activities of the Crown Agents on behalf of their overseas principals. In such matters they will continue to act strictly according to the instructions of their principals.
In their own account business I shall direct that the board pays due regard at all times to the best standards of banking prudence and does not engage in transactions which might embarrass Her Majesty's Government or conflict with the interests of its overseas principals. It should not engage directly in the property market, other than in respect of property for its own occupation, any extension in the property field being subject to my prior approval. Of course, I do not intend that existing obligations should be called in question or interfered with.
As the House will appreciate, this is not an easy area in which to achieve the best balance between commercial activities, responsibility to overseas principals, and responsibility to the Minister who appoints the Crown Agents. But I believe that the new structure and guidelines I have outlined will allow the Crown Agents to operate effectively on their own account with a full sense of social responsibility and without in any way disturbing the confidence placed in them by countries overseas, which is so well merited.
§ Mr. George Cunninghamasked the Minister of Overseas Development what is the proportion of the stock of Sterling Industrial Securities at present held by the Crown Agents or wholly-owned subsidiaries of the Crown Agents.
§ Mr. George Cunninghamasked the Minister of Overseas Development who are the present members of the Equity Investment Advisory Panel of the Crown Agents.
§ Mrs. HartThere is no change in the information give by the Chairman of the Crown Agents to my hon. Friend in December 1973.
§ Mr. George Cunninghamasked the Minister of Overseas Development what equity or loan investment has been made 382W by the Crown Agents or any of their wholly-owned subsidiaries in the First Maryland Ltd.
§ Mrs. HartNo equity or loan investment has been made by the Crown Agents or any of their subsidiaries in First Maryland Limited.
§ Mr. George Cunninghamasked the Minister of Overseas Development what is the current proportion of the stock of Kayloch Overseas Ltd. held by the Crown Agents or wholly-owned subsidiaries of the Crown Agents; and what is the nature of the business of Kayloch Overseas Ltd.
§ Mrs. HartNone; the last part of the Question would be a matter for my right hon. Friend the Secretary of State for Trade.
§ Mr. George Cunninghamasked the Minister of Overseas Development what was the total value of loan funds provided by the Crown Agents to the Stern Group of companies during the three years ended 30th June 1974.
§ Mrs. HartSince confidential discussions are still proceeding between those concerned, it would not be appropriate for me to provide these figures.