I undertake to draw my hon. Friend's remarks to the attention of my right hon. Friend the Home Secretary.

The scrutiny into the magistrates courts service, published in 1989, did point to weaknesses in the current arrangements for audit of expenditure on magistrates courts. Detailed consultation has taken place with the service and other interested parties on the main scrutiny proposal on the reorganisation of the service. I understand that my right hon. Friend the Home Secretary is now considering the results of the consultation and those of a recent costing exercise carried out by consultants.

My hon. Friend suggested also that the Audit Commission might extend its best practice and value-for-money role into the world of subsidised rented housing run by housing associations. I share my hon. Friend's view that effective management and value for money in that area are very important.

Housing associations already manage more than half a million homes in England and the Government are channelling an increasing amount of new investment through them. However, I am not sure that this is an area where an additional input from the commission is needed, certainly at the present time when there are many other priorities for its attention. However, I shall bear that point seriously in mind.

I come now to grant-maintained schools. My right hon. and learned Friend the Secretary of State for Education and Science has now approved, or is minded to approve, 59 applications for grant-maintained status. It is proving popular with parents. Many of the first grant-maintained schools have seen dramatic increases in applications. I am sure that local education authorities and others will have much to learn from the success of the grant-maintained schools sector. The Audit Commission does not have the rights of access to grant-maintained schools, but I will draw to the attention of my right hon. and learned Friend the sort of points that my hon. Friend has made.

My hon. Friend has drawn attention to the many aspects of the work of the Audit Commission, which, because of its great variety, impinges on the responsibilities of a number of Departments. He has also praised the excellence of that work and I am happy to concur with him. As I said, the history of the service is one of steady evolution, which leads me to think that we should allow the Audit Commission to expand into its new role in regard to the national health service before thrusting new burdens on it. My hon. Friend has presented many important ideas, which it may be correct to adopt. For the moment I shall draw my hon. Friend's remarks to the attention of my colleagues. I intend actively to encourage the Audit Commission in its existing areas of operation, including the development of new ideas on standards and quality of service.

Question put and agreed to.

Adjourned accordingly at two minutes past Three o'clock.