§ Mr. CohenTo ask the Chancellor of the Exchequer (1) how much Her Majesty's Government have paid to Barlow Clowes victims; [27272]
(2) if he will publish the statement read out in court in the recent Barlow Clowes case; and if he will set out the full terms of the settlement; [27274]
(3) what sums each of the relevant parties have agreed to pay to HM Treasury following the recent out-of-court settlement in connection with Barlow Clowes; [27270]
(4) for what reasons Her Majesty's Treasury agreed to settle out of court in the Barlow Clowes case; and on whose authority the decision was taken; [27273]
(5) what was the total cost to public funds of the action to obtain payment in the matter of Barlow Clowes recently settled out of court. [27271]
§ Mr. NelsonThe Government's publicly stated aim is to pursue vigorously any claims showing prospect of reducing the cost to the public purse of the ex-gratia payments scheme. This has paid some £150 million to investors who suffered loss as a result of the collapse of the Barlow Clowes group of companies in May 1988.
Consequently, the Government initiated litigation against a number of parties previously involved with Barlow Clowes companies. This litigation included proceedings against a group of professional advisers, comprising Midland bank plc, Rensburg and Co., Simpson Curtis, Singer and Friedlander Ltd., Singer and Friedlander (Isle of Man) Ltd., Sinjul Nominees Ltd., Spicer and Pegler, Spicer and Pegler (Gibraltar) and Touche Ross and Co.
The decision to settle the litigation by acceptance of a substantial sum in respect of claims made in those proceedings, including interest and costs, was taken after receiving firm legal advice from leading counsel and solicitors, which also confirmed the commercial good sense of such a course.
The settlement was signed and announced to the High Court on 24 May 1995. That statement made it clear the parties do not intend to make any further public statement, except as may be required of the Government by Parliament or of any defendant by its obligations to the stock exchange, concerning the settlement of these proceedings. I have arranged for a copy of the statement to the court to be placed in the Library.
It is generally the Government's policy not to comment on the detail of legal proceedings or settlements relating to the Barlow Clowes litigation, so as not to influence the attitude and outcome of continuing actions. The Government continue to pursue vigorously any claims in relation to the Barlow Clowes companies which show any prospect of cost-effective recovery in order to reduce the cost to the taxpayer of the ex-gratia payments schemes.