§ Sir Thomas ArnoldTo ask the Secretary of State for Defence pursuant to his answer of 10 February to the right hon. Member for Fareham (Sir. P. Lloyd),Official Report, columns 465–67, if he will publish in the Official Report, the full list of residences where significant failures of budgetary control were found; and if he will make a statement on the two occasions when wrong information was provided to Parliament.
§ Mr. SoamesThe relevant information on residences where significant failures of budgetary control were found are contained in paragraphs 5 and 11 to16 of the paper on official service residences, which I have placed in the Library of the House.
The two occasions on which the House was provided with incorrect information on this subject were in the answers given by the then Minister of State for the Armed Forces, first to the hon. Member on 9 February 1994, Official Report, columns 362–63, which put the figure at some £250,000 and, subsequently to the hon. Member for Cheltenham (Mr. Jones) on 29 March, Official Report, column 732, which gave a figure of around £260,000. In his answer to the hon. Member for Dorset, West (Sir J. Spicer) on 4 July 1994, Official Report, column 85, the then Minister of State for the Armed Forces provided the revised figure of £387,000 and expressed his regret that an incorrect figure had been given in the preceding answer.
§ Dr. David ClarkTo ask the Secretary of State for Defence pursuant to his answer to the right hon. Member for Fareham (Sir P. Lloyd) of 10 February,Official Report, columns 465–67, if he will provide a full breakdown of expenditure at the official residence known as Air house, Rheindahlen in Germany during the financial years 1991–92 and 1992–93.
§ Mr. SoamesThe figures are as follows:
£000s 1991–92 1992–93 Maintenance 34 17 Improvement 6 8 Furnishings and Equipment 33 3 Security 115 38 Utilities 17 18 Total 205 84
§ Dr. David ClarkTo ask the Secretary of State for Defence (1) if he will list the reasons that led him not to publish the full text of the KPMG Peat Marwick report into service accommodation for senior officers;
(2) pursuant to his answer to the right hon. Member for Fareham, (Sir P. Lloyd), Official Report, columns 465–67, if he will specify the name of those people who were shown an advance copy of the KPMG Peat Marwick report into service accommodation; and what assurances of confidentiality were made to them;
(3) what assessment he has made of the legal implications in relation to the publication in full of the KPMG Peat Marwick report into official accommodation for senior officers; and if he will make a statement.
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§ Mr. SoamesThe report by KPMG Peat Marwick on the outcome of its investigation into expenditure at Haymes Garth is a confidential report that was prepared for the use of senior management and Ministers, not for publication. That was the clear basis on which, as I explained in my reply of 27 January,Official Report, columns 445–46, those named in it were shown in confidence draft extracts to enable them to comment on the passages that dealt with their involvement. I have no intention either of naming the individuals concerned or of publishing the full report. The question of legal implications does not therefore arise.
§ Dr. David ClarkTo ask the Secretary of State for Defence (1) if Mr. David Hart was shown an advance copy of the KPMG Peat Marwick report into service accommodation for senior officers; and what undertakings he was required to give in respect of the report;
(2) on what occasions Mr. David Hart briefed journalists on the KPMG Peat Marwick report into service accommodation for senior personnel.
§ Mr. SoamesMr. David Hart was not shown a copy of the KPMG Peat Marwick report into Haymes Garth, and he has not briefed journalists on it.
§ Mr. David ClarkTo ask the Secretary of State for Defence if Sir Peter Cazelet will be provided with an unedited copy of the KPMG Peat Marwick report into official accommodation for senior personnel.
§ Mr. SoamesSir Peter Cazalet has been provided with a copy of the Ministry of Defence paper on the maintenance of official service residences which was issued last week. The terms of his study, which cover the requirement to entertain and how this entertainment is to be carried out, do not require him to have further detailed knowledge of the KPMG Peat Marwick report.
§ Dr. David ClarkTo ask the Secretary of State for Defence how much the report by Sir Peter Cazelet has cost to date; and what is the estimated total cost of the report.
§ Mr. SoamesSir Peter Cazalet is generously undertaking his study into representational entertainment in the armed forces without reimbursement. Costs for travel and accommodation during the study for Sir Peter and for MoD officials accompanying him, amount to some £3,000.
§ Dr. David ClarkTo ask the Secretary of State for Defence what plans he has to hold investigations into expenditure at official residences of senior officers which were not part of the audited sample in the KPMG Peat Marwick report.
§ Mr. SoamesTwelve residences, accounting for some 40 per cent. of expenditure in the relevant period, have been audited to evaluate systems and control. A comprehensive programme of measures to improve control over expenditure on official service residencies has been set in motion, but there are at present no plans for further audit work.
§ Mr. David ClarkTo ask the Secretary of State for Defence if Mr. David Hart will be providing advice for the report by Sir Peter Cazelet.
§ Mr. SoamesSir Peter Cazalet has not consulted Mr. David Hart during the preparation on his report.
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§ Mr. David ClarkTo ask the Secretary of State for Defence on what date his Department's attention was brought to the allegations concerning expenditure at the official residence known at(a) Haymes Garth and (b) Air house, Rheindallen.
§ Mr. SoamesThe question of expenditure at Haymes Garth was raised in the summer of 1993—after completion of most of the work. The extent of the problem only became clear, however, when the results of an internal audit investigation started to become available in the spring of 1994. KPMG Peat Marwick was then commissioned to undertake a high-level independent external investigation. In parallel, a separate audit of expenditure on other official service residences was set in hand, and Air house was one of a sample of residences chosen for examination. The results of both investigations were reported to Parliament on 10 February 1995.
§ Mr David ClarkTo ask the Secretary of State for Defence which consultants are being used on the report by Sir Peter Cazelet; and what is the total cost of these services.
§ Mr. SoamesNo consultants have been employed on Sir Peter Cazalet's report into representational entertainment in the armed forces.
§ Mr. David ClarkTo ask the Secretary of State for Defence, pursuant to his answer to the right hon. Member for Fareham, (Sir P. Lloyd) of 10 February,Official Report columns 465–67, if he will specify the exact date on which he received the KPMG Peat Marwick report into service accommodation for senior officers.
§ Mr. SoamesMy right hon. and learned Friend the Secretary of State for Defence and I first received the report by KPMG Peat Marwick on the results of its investigation into expenditure at Haymes Garth on 16 December 1994.