§ Lord Spensasked Her Majesty's Government:
Why the "Report and Recommendations of the Licensed Dealer's Tribunal in the matter of TWH Management Ltd.", and the associated files of evidence were withheld from the inspectors appointed by the Department of Trade and Industry in connection with their investigation into the affairs of Guinness plc; and whether there is a legal responsibility on the Secretary of State or other Ministers at the DTI to ensure that such inspectors 17WA appointed under Sections 432(2) and 442 of the Companies Act 1985 have all the relevant evidence and information on the transactions being investigated.
The Minister of State, Department of Trade and Industry (Earl Ferrers):The report and recommendations of the Licensed Dealer's Tribunal in the matter of TWH Management Ltd., was received by the department after the inspectors had completed their interim report into the affairs of Guinness Plc. It appears that no consideration was given at that time to disclosing the tribunal's report and recommendations to the inspectors, whose investigation was then in abeyance. The inspectors' interim report and the tribunal's report and recommendations were however subsequently disclosed to the Serious Fraud Office.
The Secretary of State and other departmental Ministers are under no statutory duty to pass information to inspectors appointed under the Companies Acts. However the department is always concerned to pass material to such inspectors wherever it appears that this may be relevant to the matters they are considering.
§ Lord Spensasked Her Majesty's Government:
Whether the interim report of the inspectors appointed to investigate the affairs of Guinness plc completed on 24 November 1988 but distributed in October 1989 has any continuing validity in the light of the knowledge that relevant evidence was withheld from the inspectors and, in these circumstances, whether the interim report will now be recalled from its distribution list to the Panel of Takeovers and Mergers, the Bank of England, the Securities and Investment Board, the Securities Association, the Investment Management Regulatory Organisation and the International Stock Exchange.
Earl Ferrers:The interim report itself draws attention to the possibility that the views expressed therein might change in the light of evidence to emerge during the Guinness trials. Those who were sent the report are well aware of its status and of subsequent developments including the reference to the Court of Appeal.
In these circumstances there are no plans to withdraw the interim report.
§ Lord Spensasked Her Majesty's Government:
Whether they will hold an investigation into the circumstances of the withholding of relevant evidence from inspectors appointed by the DTI to investigate the affairs of Guinness plc in order to establish whether there has been a breach of the Companies Act 1985 and, if so, who in the DTI must accept responsibility.
§ Lord Spensasked Her Majesty's Government:
The cost to date of the investigation by inspectors appointed by the DTI into the affairs of Guinness plc, the estimated cost to completion; and whether value for money has been obtained.
18WA
Earl Ferrers:The total cost of the inspection to the end of January 1995 was £ 2,458,000. The latest estimate of the total costs to finish the enquiry is £ 3 million. Any assessment of value for money must await completion of a final report.