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Cosmetics

Mr. Matthew Taylor : To ask the Secretary of State for Trade and Industry what is his Department's policy in respect of the number of clearances given to additives for use in cosmetics ; and if he will make a statement.

Mr. Forth : The "positive" or approved lists of colourants, preservatives and ultra filters are agreed by member states at Brussels on the advice of the EC scientific committee on cosmetology. Since these are potentially more hazardous classes of ingredients the SCC normally asks for a full range of animal test data to safeguard the user.

ECGD (Relocation)

Mr. Gareth Wardell : To ask the Secretary of State for Trade and Industry if he will make it a criterion for the privatisation of the Export Credits Guarantee Department that the consequent relocation of offices from Cardiff, should take into account areas in Wales of high unemployment and poverty.

Mr. Ridley : There is currently no proposal for relocating the offices away from Cardiff nor do I expect one : but this would be a matter for the management after privatisation.

London United Investments

Mr. David Shaw : To ask the Secretary of State for Trade and Industry if he will take steps to satisfy himself that the accounts of London United Investments plc in respect of the financial years ended in 1988 and 1989 showed a true and fair view of the profit and loss accounts and balance sheets and complied with the Companies Acts.

Mr. Redwood : The accounts of London United Investments plc for 1987 and for 1988 were audited by Messrs. Peat, Marwick, McLintock who reported that the financial statements of the company gave a true and fair view of its affairs and had been properly prepared in accordance with the Companies Act 1985 and that the consolidated financial statements had been properly prepared in accordance with the provisions of the Companies Act 1985 applicable to insurance companies.

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The group's accounts for 1989 are not yet due. In another answer to my hon. Friend today I have set out the action taken by my Department.

Mr. David Shaw : To ask the Secretary of State for Trade and Industry when his Department first sought an actuarial report by Tillinghast into the insurance liabilities of London United Investments plc or its subsidiary companies ; what were the dates when the report or reports were received by his Department ; what were the dates when his officials took action on each report ; and what was the nature of the action taken in each case.

Mr. Redwood : The Department required an actuarial report into Walbrook and its subsidiaries in January 1989. This report by Tillinghast was received in June 1989. The Department after consulting the Government Actuary's Department put various questions to LUI in August and September 1989. In October the DTI told LUI that it would require a further actuarial report covering all the United Kingdom insurance subsidiaries and that the Department needed to discuss a substantial reduction in the new business taken on by Walbrook. None of the other United Kingdom insurance companies in the group were authorised to take on new insurance business. The second actuarial report has not yet been received by LUI. The regulatory action to stop new business being taken by Walbrook, announced at 8.30 am on 26 March, was on the basis of Tillinghast's preliminary work which Schroders, the recently appointed merchant bank advisers to LUI reported to the Department on Saturday 24 March 1990.

Illegal Profits

Mr. Redmond : To ask the Secretary of State for Trade and Industry if he will introduce legislation to provide that anyone, including financial institutions, who knowingly conceals the origins of illegal profits, will face a fine or imprisonment.

Mr. Waddington : I have been asked to reply.

It is already a serious offence to launder the proceeds of drug trafficking and terrorist funds, and there are extensive powers both to enable the police and customs officers to investigate such activities and to require banks and other financial institutions to report suspicious transactions to those authorities. The powers to combat drug money laundering have been further strengthened by the Criminal Justice (International Co-operation) Act 1990, which also contains provisions to prevent drug traffickers evading the controls on money laundering by importing or exporting their proceeds in the form of cash.

It is also an offence to handle stolen goods or the proceeds of stolen goods ; and those who do so may be held to have acted as accessories, conspirators or aiders and abetters in relation to the crime. Additionally, part VI of the Criminal Justice Act 1988 frees banks and others from obligations of confidentiality when they report voluntarily transactions involving funds which they suspect are derived from criminal activity.

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