§ Mr. GouldTo ask the Secretary of State for the Environment what communication his Department has received about the Local Authorities Credit Management Advisory Board; and if he will make a statement.
§ Mr. HeseltineMy Department has received three inquiries from companies asking for confirmation of the bona fides of Local Authorities Credit Management Advisory Board.
The companies from whom the inquiries were received had responded to an advertisement in the Financial Times in September and were considering entering into contracts with LACMAB for the collection of debt owed to local authorities. These contracts involved them placing £250,000 on deposit with LACMAB for six months.
According to these companies, LACMAB had claimed to be known to my Department, and to be working under its auspices. Any such claim would be untrue. This organisation is not known to my Department, and has not carried out any work under its auspices. My officials also ascertained that the organisation had not previously been known to the Association of County Councils, Association of District Councils, Association of Metropolitan Authorities, Audit Commission or Chartered Institute of Public Finance and Accountancy. We have informed the firms from whom inquiries have been received accordingly.