§ Lord O'Brien of Lothburyasked Her Majesty's Government:
How their policy on the undisclosed reserves of banks has developed since the debate on 8th February 1982 (HL Deb, col. 33), and their Written Answer on 16th July 1984 (col. 1323).
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)My Lords, the Government's policy on undisclosed reserves has changed little. The position described in the debate on 8th February remains as then. The Government have not formed a final view. However, we considered then that the burden of proof rests with those who believe in the necessity for the retention of undisclosed reserves.
Before discussions began on the proposed directive on the annual accounts of banks in May last year, we reconsidered our position. Given our view on the burden of proof, we considered that the proposal for undisclosed reserves in principle ran counter to the trend towards transparency and comparability of accounts established in other Community legislation. This was reported in our Written Answer to the House on 16th July 1984. We have therefore supported in Brussels similar views expressed by other member states.