HC Deb 18 December 1995 vol 268 cc887-9W
Mr. Simpson

To ask the Secretary of State for Social security (1) when his Department ceased to audit the accounts of Motability Finance Limited; and if he will make a statement about the subsequent arrangements to ensure full public accountability for the use of public funds;[5141]

(2) what assessment he has made of the level of profits made by Motability Finance Limited.[5093]

Mr. Burt

I refer the hon. Member to the reply given to the hon. Member for Montgomery (Mr. Carlile) on 19 July 1995,Official Report column 1489.

Mr. Simpson

To ask the Secretary of State for Social Security what examination his Department has made of the level of contingency reserves in the Motability car hire and leasing schemes; and if he will make a statement. [5143]

Mr. Burt

I refer the hon. Member to the reply given to the hon. Member for Montgomery (Mr. Carlile) on 19 June 1995,Official Report, column 99.

Mr. Simpson

To ask the Secretary of State for Social Security (1) what assessment he has made of possible conflicts of interests amongst the boards of the Motability group of companies and partnerships; [5139]

(2) when he was informed about the letter sent by the deputy chairman of Motability Finance Limited to the director of Motability, on 23 June 1993, setting out his concerns about the relationship between Motability. the charity and Motability Finance Limited; [5097]

(3) what assessment he has made of the Bircham report on Motability. [5140]

Mr. Burt

I am aware of the correspondence to which the hon. Gentleman refers. The governance of Motability is the responsibility of its governors. They must ensure there arc no harmful conflicts of interest and that Motability acts in accordance with charity law and the article of its own association.

Mr. Simpson

To ask the Secretary of State for Social Security what requirements his Department has imposed for windfall profits in the Motability programme to he returned to those whose disability living allowance benefits were paying for the lease or hire purchase agreements. [5120]

Mr. Burt

None. Motability regularly reviews the level of contingency reserves held by Motability Finance Limited to ensure that they are set at the appropriate level. Those reserves held in excess of the scheme's requirements are transferred by way of gift aid into the Motability Tenth Anniversary trust. Payments from the tenth anniversary trust are transferred into Motability's charitable funds.

The Department receives reports from Motability on how these charitable funds are used.