HM Treasury News Release
84/97                                             17 July 1997
_________________________________________________________________
                                
             NATIONAL AUDIT OFFICE ACCESS EXTENDED 
 
The National Audit Office (NAO) will from today gain access to
papers dealing with the conduct of Government departments'
business with the NAO or the Public Accounts Committee.  

Announcing the ending of the previous convention restricting
access, Financial Secretary Dawn Primarolo said :

     "The Public Accounts Committee criticised the convention
     under which some official papers, such as those which
     documented a department's preparation for Public Accounts
     Committee hearings, were not shown to the NAO in the course
     of its investigations. 

     "The Government has decided that to continue to withhold
     these papers would not be justified in the light of its
     commitment to open government. Although in itself a small
     step, it is further evidence of the Government's
     determination to ensure that audit and accountability
     arrangements are fully effective."

The change will take immediate effect. It was announced in the
Government's response to the 22nd Report of the Public Accounts
Committee, published today as a Treasury Minute (CM 3714). 



Notes For Editors


1.   Under a long-standing convention certain papers were
     withheld from NAO : 

      (i)      papers dealing with responses to NAO enquiries,
               proposals for NAO investigations, and draft NAO
               reports;

     (ii)      briefing papers for an Accounting Officer's
               appearance before the Public Accounts Committee
               (PAC);

     (iii)     papers dealing with the contents of Treasury
               Minutes responding to PAC reports; and

     (iv)      papers, including interdepartmental
               correspondence, about relations with the NAO.  

2.   Regular review of the arrangements was part of the system,
     to ensure that only papers within the agreed categories
     were withheld.  

3.   The PAC 22nd Report, "British Rail Maintenance Limited Sale
     of Maintenance Depots"  criticised the convention. Some
     departments, including the then Department of Transport to
     whom the 22nd Report was addressed, had already decided on
     a policy of allowing NAO access to these papers.

4.   The Government's decision, published today in a Treasury
     Minute response (CM 3714) to Conclusion (xvii) of the 22nd
     PAC Report  means that with effect from today all papers
     which would previously have been withheld will be open to
     NAO inspection. Past papers will be similarly treated.

5.   Conclusion (xvii) of 22nd PAC Report stated :

     On the use of the "Not for NAO Eyes" document
     classification
     
     "We welcome the Department (of Transport)'s decision to
     abandon the "Not for NAO Eyes" convention...We urge other
     departments to consider following the Department of
     Transport's example."

6.   The Treasury Minute response to Conclusion (xvii) of 22nd
     PAC Report of 1996-97, published on 17 July 1997 as CM3714
     states:

     "The Government agrees with the Committee that the use of
     the designation "Not for NAO Eyes" (NFNE) is no longer
     appropriate. Departments have therefore ceased it use it
     with effect from today, 17 July 1997. The National Audit
     Office will have access in the normal way to papers
     previously marked NFNE."

7.   If you have access to the Internet you can find this news
     release at http://www.hm-treasury.gov.uk. Other Treasury
     material can also be found at this address.