HC Deb 16 December 1982 vol 34 cc209-10W
Mr. Weetch

asked the Chancellor of the Exchequer whether he has been sent a copy of the report of the committee of inquiry under the joint disciplinary scheme covering the Alfreton building society; and whether he will make a statement.

Mr. Bruce-Gardyne

Yes. It would not be appropriate for my right hon. and learned Friend to comment upon the findings of the Committee in respect of those persons who were the subject of the inquiry.

However, the report also justifiably drew attention to the problems which face small building societies in meeting the internal control and inspection provisions of the Building Societies Act. These problems have to be seen in the context of the considerable educational and advisory effort on control systems in small societies made in the last three years by the accountancy profession, which has issued a guideline for auditors in building societies, the Chartered Building Societies Institute, the Building Societies Association and the Registry of Friendly Societies. These are not mentioned in the report, but all have in different ways focused attention upon the control problems, including those of small societies, and upon the possible means of their solution, whether by the society taking the necessary steps from within its own resources to create and maintain the systems, or, where that is not practicable, seeking a transfer of engagements to another society. That work is continuing.

After the report was published, the Chief Registrar wrote to the consultative committee of the accountancy bodies inviting an exchange of views on the inquiry's general comments and on what further steps might be desirable either in respect of those comments or more generally in regard to internal control and audit in small building societies. The accountancy bodies have told the Chief Registrar that they are now ready to discuss the matter.

Mr. Weetch

asked the Chancellor of the Exchequer whether, in the light of the recent inquiry into the Alfreton building society under the joint disciplinary scheme, he is satisfied that the provisions of the 1962 Act are adequate to ensure proper financial control and accountability in small building societies.

Mr. Bruce-Gardyne

Yes. I refer the hon. Member to the reply that I gave to a similar question by the hon. Member on 10 February.—[Vol. 17, c.388–89.]

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