§ Mr. FallonTo ask the Secretary of State for Trade and Industry if he will place in the Library the Treasury Minute of Approval in respect of the purchase of German Parcels by the Post Office. [66021]
§ Mr. Ian McCartney[holding answer 18 January 1999]: Treasury approval was given in the form of a letter from the then Chief Secretary to the then Secretary of State. In accordance with the normal conventions, it would not be appropriate to publish this letter.
§ Mr. FallonTo ask the Secretary of State for Trade and Industry if the details of the purchase of German Parcels by the Post Office will be supplied to the Committee of Public Accounts. [66019]
§ Mr. Ian McCartney[holding answer 18 January 1999]: The financial consequences of any investments made by the Post Office will be appropriately reflected in the Post Office annual report and accounts. These will be laid before Parliament in the usual way.
§ Mr. FallonTo ask the Secretary of State for Trade and Industry for what reasons details of the purchase of German Parcels by the Post Office have not been published. [66023]
§ Mr. Ian McCartney[holding answer 18 January 1999]: A great deal of information is available on the Post Office acquisition of German Parcels. But this is a commercial transaction. The Post Office have advised us that they do not have details of similar acquisitions made by their European post office competitors—details which it would be to their advantage to know. They therefore do not want exact details of their own purchase to be released for reasons of commercial confidentiality. We respect that.
However, the estimated turnover of German Parcels for the current year is around £265 million. A normal core price for such an acquisition might be the annual turnover plus any special assets. The agreed purchase price for German Parcels is in line with this.
§ Mr. FallonTo ask the Secretary of State for Trade and Industry (1) what arrangements have been made to enable the National Audit Office to examine the purchase by the Post Office of German Parcels; [66020]
(2) if the Comptroller and Auditor General has given his agreement to the decision not to publish details of the purchase of German Parcels by the Post Office. [66022]
§ Mr. Ian McCartney[holding answers 18 January 1999]: Under Schedule 4 of the National Audit Act 1983 the Post Office is specifically exempted from the Comptroller and Auditor General's responsibilities for the examination of the economy, efficiency and effectiveness with which public bodies carry out their functions. Post Office accounts are prepared in accordance with commercial practice and are audited by external auditors appointed by the Secretary of State rather than by the National Audit Office.
However, the National Audit Office, through the Comptroller and Auditor General, has a right under Section 6(1) of the National Audit Act 1983 (as qualified by Section 6(2) of the Act) to examine the DTI's and Treasury's roles in approving the purchase of German Parcels.