HC Deb 24 October 1990 vol 178 cc199-201W
Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry what matters he intends to discuss with the presidents of the accountancy bodies during his next meeting.

Mr. Redwood

I expect that, as usual when I meet leading representatives of the accountancy profession, we shall discuss matters of current mutual interest.

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry whether the current president of any of the bodies listed in section 389 of the Companies Act 1985 is or has been a partner in a firm criticised by his Department's inspectors.

Mr. Redwood

Thornton Baker, now part of Grant Thornton, Chartered Accountants, was criticised in the inspectors' report on Gilgate Holdings Ltd. and others, which was published in 1981. Mr. M. Lickiss FCA, currently president of the Institute of Chartered Accountants in England and Wales, and Professor J. Percy CA, currently president of the Institute of Chartered Accountants of Scotland, are partners in Grant Thornton.

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry whether he will be meeting the president of the Institute of Chartered Accountants in England and Wales in the near future.

Mr. Redwood

I met him on 8 October and have no plans for a further meeting in the near future.

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry whether any accountancy firms criticised by his Department's inspectors act as auditors to public bodies sponsored by his Department.

Mr. Redwood

Six reports, issued since June 1979 by inspectors appointed under the Companies Act have contained criticisms of accountants who act as auditors to public bodies sponsored by my Department. They are as follows:

Mr. Redwood

Three reports issued since 1980 by the committee of inquiry appointed under the joint disciplinary scheme, have contained criticisms of firms of accountants who act as auditors to public bodies sponsored by my Department. They are as follows:

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry whether he intends to take any criminal or civil action against auditors criticised by the inspectors in the Minet Holdings report.

Mr. Redwood

No. A copy of the Minet report has been passed to the Institute of Chartered Accountants in England and Wales.

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry if he will invite the Office of Fair Trading to investigate the accountancy bodies' control of the accountancy press.

Mr. Redwood

I have no plans to do so. The hon. Member is of course free to put his concerns on this subject to the Director General of Fair Trading, who will look into any competition issues which arise.

Mr. Austin Mitchell

To ask the Secretary of State for Trade and Industry whether he will seek to legislate to ban the call-off stocks accounting method used by companies.

Mr. Redwood

It would be helpful if the hon. Member would explain the nature of the problem he has in mind, as "call-off stocks" is an imprecise phrase.

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