§ Baroness Miller of Hendonasked Her Majesty's Government:
Who were the "number of people" within the Department of Trade and Industry referred to by the Minister for Science on 12 October (H.L. Deb., col. 497) to whom the draft report of the National Audit Office relating to the acquisition of German Parcel was shown on 27 June. [HL4351]
§ Lord Sainsbury of TurvilleDrafts of the National Audit Office report on German Parcel were shown to DTI officials responsible for postal services and for finance and resource management who commented on their factual accuracy. The Comptroller and Auditor General sent a final draft of the report to the DTI Accounting Officer on 27 June and he replied on 14 July.
§ Baroness Miller of Hendonasked Her Majesty's Government:
On what dates the Minister for Science himself first saw a draft report and the final report respectively of the National Audit Office on the acquisition by the Post Office of German Parcel. [HL4350]
§ Lord Sainsbury of TurvilleNational Audit Office audit reports are concerned with the economy, efficiency and effectiveness with which departments carry out their role. Drafts are shown to the department being audited so that it can comment on factual accuracy. They are not normally shown in advance of publication to Ministers or to Members of Parliament.
I did not see a draft of the NAO report on the acquisition by the Post Office of German Parcel. I was, however, briefed about the report when the noble Baroness made clear that she had obtained a copy. I first saw the published report on the weekend of 7–8 October.
§ Baroness Miller of Hendonasked Her Majesty's Government:
Whether Sir Michael Scholar, or any other senior official of the Department of Trade and Industry, was aware when they received the draft report of the NAO on the acquisition by the Post Office of German Parcel prior to the Report stage and Third Reading of the Postal Services Bill that an amendment was being proposed dealing with the matter of disclosure of major transactions in line with the Stock Exchange procedures; whether the department's intention to agree with the National Audit Office's proposals was brought to the Minister's attention prior to either of the two debates on the amendment; and, if not, why not. [HL4353]
119WA
§ Lord Sainsbury of TurvilleThe departmental accounting officer and officials were aware both of Ministers' policy on disclosure requirements and of the noble Baroness' amendment when they commented on the final draft of the NAO report. In seeking comments from the accounting officer on its draft report, the NAO was not inviting the department to agree to specific policy proposals. The department's comments related to the factual accuracy of the draft report.
§ Baroness Miller of Hendonasked Her Majesty's Government:
How the Minister for Science reconciles his statement to the House of Lords on 11 July (H.L. Deb., col. 181) that, "when one refers to the department giving authority to the report, that must mean Ministers", with his reply to a question by Lord Razzall on 12 October (H.L. Deb., col. 498) that, "Noble Lords will appreciate that the report is agreed by the Permanent Secretary, not by departmental Ministers. It is a matter for the NAO and the Public Accounts Committee, and it is the Permanent Secretary who takes the role of accounting officer". [HL4352]
§ Lord Sainsbury of TurvillePolicy proposals on disclosure of information about major transactions by the Post Office have been developed and implemented in the light of experience with Post Office acquisitions, including German Parcel. As I made clear during the passage of the Postal Services Bill, Ministers considered and agreed a number of specific provisions on disclosure that will be incorporated in the company's Memorandum and Articles. The aim of these provisions is to give effect to the White Paper commitment that the Post Office be transparent in its operations and accounting and demonstrate that it is competing fairly with its competitors. As I explained during debate on the noble Baroness' amendments, the requirements are analogous to those of the Stock Exchange.
Officials informed NAO of the policy on disclosure requirements adopted by Ministers. The NAO 120WA reflected this in its German Parcel report in the following terms:
The Department has told us that it accepts our argument that there is a case for the Post Office and other similar public sector bodies to accept analogous rules to those of the Stock Exchange." (p. 44, paragraph 3.12)When, during Third Reading of the Postal Services Bill on 11 July, I spoke of ministerial agreement and authorisation, I had in mind that Ministers decide policy, as indeed they decided the policy on disclosure requirements which is being incorporated in the Memorandum and Articles and which is referred to in the NAO report.
On 12 October I was explaining the procedures relating to NAO audit reports and that responsibility for commenting on the accuracy and completeness of the facts as presented by the NAO rests with the Departmental Accounting Officer.