Appointment of the Comptroller and Auditor General

I close the debate by echoing from my own experience the tributes that have rung out from all parts of the House this afternoon to the record, experience and public service of Sir John Bourn, who retires at the end of the month. The most important Select Committee on which I served when I first entered the House, when we were in opposition in the 1992-97 Parliament, was the Public Accounts Committee. At that time, Sir John was relatively new in his period of service, and I found him an extremely courteous and sophisticated Comptroller and Auditor General, who was always willing to listen to questions from new Members and help them with the complexities of holding the Government to account through the work of the PAC and the National Audit Office. If anyone went to him worried about issues in particular Departments, he was always ready with an interested ear and an arched eyebrow, full of good suggestions about how to pursue the matter—indeed, he often allowed the NAO to pursue it, to the benefit of the effectiveness of public expenditure. I pay my own tribute to Sir John as Comptroller and Auditor General. As has been said, he served for 20 years, and it is not an inconsiderable achievement to establish and maintain an excellent record for leadership when in the public gaze for so long. He steered the NAO into becoming a body that, as many right hon. and hon. Members have said today, is regarded as world class by its profession. It is influential internationally and does an extremely good job in the UK in ensuring that we get best value for money from our public expenditure. As there has not been a new CAG appointment since 1987, I take this opportunity to emphasise the Government's regard for the importance of the ability of the CAG and the NAO to secure their professional independence as auditors of the Government and, obviously, of the Government's accountability to Parliament. As many Members have mentioned, it is especially important that the CAG be independent. In addition to supporting Parliament in holding the Government to account, the NAO helps to improve government through objective reporting and recommendations for improved management practices. Departments in Whitehall do best by taking a great deal of notice of such recommendations; after NAO reports are published, Departments put a great deal of effort into mending their ways and closing the loopholes that have led to inefficient spending. The NAO also helps citizens by providing greater transparency, bringing their concerns to light and prompting improvements in public services and public service outcomes. All of us in this House have an interest in that. The NAO's role and responsibilities have substantially increased since 1988 and they continue to evolve. Since Sir John took up his post in that year, the number of financial reports has remained broadly the same at about 480. However, their scale and complexity have increased through the changeover to accruals resource accounting. In 1988, the NAO produced 31 value-for-money reports, seven memos to the Public Accounts Committee and two reports on the accounts. In 2007, it produced 60 value-for-money reports and 25 reports on the accounts. In addition, the NAO now reports on a range of other matters, including annual reports on budget assumptions and impact assessments. In 1988, the NAO supported 30 meetings of the PAC; sometimes it seems as though that Committee now has more meetings than that in one week. In 2007, that number had increased to 58, with 61 PAC reports, and the NAO now supports 13 other parliamentary Committees. For me as the Treasury Minister with responsibility for ensuring that we try to increase our productivity as a country, the interesting statistic is that in 1988 the NAO employed 900 staff; by 2007, that number had fallen to 850. We are getting a great deal more effort, work and added value from a slightly reduced staff. In 1988, 40 contracts had been outsourced; in 2007, that number had increased to 155, which amounts to about 25 per cent. of NAO resources. I have twice been a member of the Public Accounts Committee and my experience is that the NAO benefits greatly from the transfer of information from the private sector and other areas through secondments and outsourcing. Since 1997, the CAG has reported annually on financial management in the European Union. In recent years, he has also been asked to undertake a range of substantial reviews at the Government's request, such as a review of the Financial Services Authority in 2007 and a review of Home Office statistics on asylum and migration in 2004. As to the future, the House will know that provisions in the Companies Act 2006 will enable the CAG to become eligible to audit non-departmental public bodies. That is likely to add a further 80 or more bodies to the audit portfolio. I should reiterate what my right hon. Friend the Prime Minister said: in its July 2007 report, the Public Accounts Commission decided to review the corporate governance of the NAO to ensure that it is in line with best practice. We have heard from my right hon. Friend the Member for Swansea, West (Mr. Williams); he was probably the most long-standing member of the Public Accounts Committee and is chairman of the Public Accounts Commission, as well as being Father of the House—a triple whammy. John Tiner agreed to chair that NAO corporate governance review; my right hon. Friend said that its report has arrived on his desk, but that he has not yet had time to read it. Obviously, the corporate governance of the NAO is of great interest to all of us and we look forward to the Public Accounts Commission report, its response to Mr. Tiner's suggestions and its suggestions on how to take forward the new management arrangements for the NAO and the office of Comptroller and Auditor General. As my right hon. Friend the Prime Minister said, the Government have agreed, if necessary, to enact reforms to the governance of the NAO that proceed from the Public Accounts Commission's decisions. I look forward to receiving in detail the commission's suggestions in due course. Finally, I echo the widespread welcome today for Mr. Burr's appointment. I agree with right hon. and hon. Members from across the House that he is eminently qualified to assume the post of Comptroller and Auditor General. He has made a substantial contribution as Sir John Bourn's deputy over the past eight years, and I am grateful for his flexibility and understanding in stepping into the role while the Public Accounts Commission continues its work on governance. I note that Mr. Burr has indicated his intention to serve as Comptroller and Auditor General only until the reforms flowing from the process are completed and in place, and I thank him for that. I support the motion. Question put and agreed to.