Examination of Witnesses (Questions 417-419)|
TUESDAY 2 JULY 2002
417. Good morning, gentlemen. I am sorry that
the previous sessions overran, but I know you were here and listened
to some of the fascinating evidence which was produced. Could
you introduce yourselves, please?
(Mr Grewe) John Grewe, Director of Financial
Reporting Policy at the DTI.
(Mr Rogers) Richard Rogers, Director, Company Law
and Investigations in the DTI.
(Mr Loweth) David Loweth, Head of the Central Accountancy
team at the Treasury.
(Mr Lawton) David Lawton, Head of Financial Stability
and Markets team at the Treasury.
418. What is the Government's position on funding
of the Accountancy Foundation? Mention has been made that it is
not seen as independent.
(Mr Grewe) This is something which has been in the
media a lot lately. The Foundation was set up on an agreement
between Government and the accounts profession a few years ago
and the clear basis for it was that the profession would fund
it and that is the current arrangement; funding is arranged for
the first three years. More recently there has been the proposition
that it cannot be truly independent of the profession unless it
has funding from Government or from somewhere else. We recognise
that there is an issue which is in play there. It has only just
got into being. It is part of the original agreement that there
would be a review. Clearly things can be done more or less quickly
in response to that. It is one of the issues within the co-ordinating
group which is chaired by Ministers but Government have not come
back and said yes, we should change the funding arrangements definitely
at this stage.
419. Were you thinking about it?
(Mr Grewe) It must be an issue which it is right to