HC Deb 25 October 1989 vol 158 cc453-4W
Mr. Nicholas Bennett

To ask the Secretary of State for Trade and Industry when he expects to make an announcement about the appointment of a chairman of the Financial Reporting Council.

Mr. Redwood

In the light of my Department's consultations with interested parties about the implementation of the structural proposals in the Dearing report on the making of accounting standards, I have asked Sir Ronald Dearing, and he has agreed, to become chairman designate of the Financial Reporting Council. His task will be to negotiate terms with all concerned so that the new arrangements for making and enforcing accounting standards are in place next summer.

When the Financial Reporting Council is established, it is the intention of my right hon. Friend the Secretary of State for Trade and Industry, acting jointly with the Governor of the Bank of England, formally to appoint Sir Ronald as chairman of the council.

Clear unambiguous accounting standards which are effectively enforced are essential to the good working of a market economy. The report of the committee chairman by Sir Ronald has been widely welcomed as identifying the way to enhance the authority and general acceptance of accounting standards. I can think of nobody who is better survey of personal incomes and the 1986 family expenditure survey. However, all estimates are provisional.

Latest estimates for 1989–90 are given in the table and include mortgages formerly under the option mortgage scheme which are now subsumed within MIRAS. The estimates take account of the recently announced increases in mortgage interest rates.

qualified to carry through the important task of setting up the new arrangements, and I am delighted that Sir Ronald has agreed to undertake this role.