Crown Agents

Part of the debate – in the House of Commons at 12:00 am on 5 December 1977.

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Photo of Mr George Cunningham Mr George Cunningham , Islington South and Finsbury 12:00, 5 December 1977

There is a lesson to be drawn on what things it is appropriate for a House of Commons Committee to do. Studies of rural development and the like can be done by academics far better than by the House of Commons. Indeed, when the House tries to do them, they are done by the academics and we just print the report. But things like the investigation of the Crown Agents were particularly appropriate to a Select Committee of the House for the following reasons.

First, a Select Committee has power to summon witnesses and make them answer questions. Secondly, it has from time to time either to print all its evidence or to keep some of it from the public. When we decided to make this investigation we conciously decided that we would not print the evidence as we went along but would wait until the end and then decide what needed to be kept secret because of the relationship with principals.

Even after May 1974, when the vote was taken—with myself and my hon. Friend the Member for Enfield, North (Mr. Davies) opposing—to suspend the investigation, Fay says that for many months—until October 1974, when Mr. Cuckney took over—the Ministry of Overseas Development was not well informed at all about what was happening within the Crown Agents. I think that if the Select Committee had operated during that summer we could have helped the Minister to find out what was happening, through the greater power and perhaps greater willpower that we have as compared with the Ministry.

It was on 13th May 1974 that, according to Fay, there was a meeting in the Treasury, where the Bank of England, the Treasury and the Ministry of Overseas Development agreed that the Crown Agents were bust or were capable of being bust. It was on 22nd May, nine days later, that the House of Commons Select Committee decided that it would not bother to investigate but would leave it to the Executive.

It is on those grounds that I say that a major culprit in this whole business is the House of Commons itself and the failure of those members of the Committee who opposed the investigation in the first place and who voted for the suspension of the investigation later. That failure must be brought out in any later inquiry.

I am frankly very dubious about the need for any further inquiry. I should say—it is not so much declaring an interest but declaring a prejudice perhaps—that I know personally many of the officials closely involved. But may I use that fact to make this point: if there was over many, many years an accepted attitude—accepted not only by civil servants, the Bank of England and so on, but by Ministers too, that the Crown Agents should be left alone and should not be interfered with, and indeed that there was not much power to interfere with them—are we who are collectively very blameworthy in this matter to set up a Committee to find which civil servants are to be blamed? I do not find it a very attractive idea. If it is to be done, such Committee as there is must be free to lay blame also upon Ministers. Of course, no blame will attach to the present Minister of State for Overseas Development, and I do not say that any blame will attach to any Minister, but the Committee must be free to attach blame to Ministers, and I am not sure that on its present terms of reference it is free to do so. The Committee must also be free to express opinions about the House's rôle in this matter.

I have one final point, and I leave it till last because it is a party political point. I have heard it reported that some Conservatives are saying "Terrible loss arising during the period of Labour Government". It just so happens by accident that the period when the failings of the Crown Agents first became well known was 1970 and the time when the tidying-up job started was 1974. If that had been a period of Labour Government, we should be being crucified now for our failure to understand about business, our failure to take the necessary steps, and so on. Therefore, I hope that no Conservative will accuse us in this matter of being at all lacking. [Interruption.] It has been done. [Interruption.] The greatest failures took place during that period, and it as well for that to be publicly stated.