§ Mr. RowlandsTo ask the Secretary of State for Wales, pursuant to his answer of 24 February,Official Report, column 417, if he will make a statement on the circumstances which led to the final directions, the sums of public money involved, and in what ways his Department informed hon. Members and the Committee of Public Accounts of these directions.
§ Mr. Redwood[holding answer 3 March 1994]: I understand that on both occasions urgent decisions were required in respect of the Welsh development agency's investment in the Parrot Corporation.
In 1985 Treasury approval for a £750,000 guarantee from the Welsh development agency to the Parrot Corporation was given on condition that it would be used as a facility of last resort. In October 1985 an immediate decision was required in order to ensure that refinancing negotiations which were under way at the time did not collapse and the then Secretary of State authorised the accounting officer to waive the condition.
In April 1988 another immediate decision was required and the then Secretary of State authorised the accounting officer, in the absence of Treasury authority, to approve funding of £58,500 by the WDA to enable the agency to take up its share of a rights issue in order to allow the agency to maintain its shareholding and to remove a contingent liability.
On both occasions the circumstances described were considered to fall within the provisions of paragraph 11 of the then accounting officer memorandum, that is, issues not of formal propriety or regularity but more widely of prudent and economical administration. This did not require notification to the Comptroller and Auditor General. The Department drew the circumstances to the attention of the National Audit Office in the course of a subsequent inquiry.