Teesworks Project: Audit Debate
Full Debate: Read Full DebateBaroness Taylor of Stevenage
Main Page: Baroness Taylor of Stevenage (Labour - Life peer)Department Debates - View all Baroness Taylor of Stevenage's debates with the Ministry of Housing, Communities and Local Government
(5 months, 1 week ago)
Lords ChamberTo ask His Majesty’s Government what assessment they have made of the audit arrangements for the Teesworks project, and of whether they are effective for the scale of the work being carried out.
The public and private sector bodies engaged in the Teesworks project are responsible for ensuring that they comply with all relevant audit requirements. Additionally, the Government commissioned an independent review of the project, which we published in February. The Tees Valley Mayor is implementing its recommendations, including recommendations 27 and 28, relating to the internal and external audit functions.
My Lords, I thank the Minister for her Answer, but I honestly think that the people of Teesside deserve better than to be fobbed off like this. The independent review published in January said:
“Based on the evidence from the review the governance and financial management arrangements are not of themselves sufficiently robust or transparent to evidence value for money”.
We are told by Ministers that the NAO does not look at individual authorities, so we questioned on 30 January and 7 March just what the arrangements are for auditing this project, so local people can be reassured about the return their significant investment is giving them. We were promised an answer in writing, which has not appeared. In view of the parlous state of local government audit generally, and the nature of the 28 scathing recommendations set out in the review, an NAO financial investigation seems appropriate. Why are the Government still resisting that?
I thank the noble Baroness for her supplementary question. I assure her that the letter is on its way; I thought that it was already sent, so I apologise if she has not received it yet. As I outlined in my response to the debate on the regeneration of industrial areas on 7 March, it is not the NAO’s role to audit or examine individual local authorities, and its power would not normally be used for that purpose. I have since looked into this, and expanding its remit previously required the Chief Secretary to the Treasury to grant statutory powers. Therefore, given that we have had a thorough independent review, it is time that we learned from it and implemented those lessons rather than repeat it.