Controversy over Charles' finances

Tuesday, 8 February 2005 12:00 AM

Prince Charles is facing demands to open up the accounts of the Duchy of Cornwall to public scrutiny.

The Duchy of Cornwall provides income for the Prince of Wales and his sons. Although Prince Charles and his family do not receive any money direct from the taxpayer in the form of the civil list, last year he did receive over £4 million in Government grants.

The duchy is believed to have made almost £12 million last year.

In a sometimes heated meeting of the Public Accounts Select Committee yesterday, the head of the National Audit Office, Sir John Bourn, was denied access to the books.

Currently, the books are audited privately by PricewaterhouseCoopers before being approved by the Treasury.

But Sir John told the committee that he would like to have a look at the books themselves, not just the accounts. While adding that he was not questioning the Treasury, he said: "But the Treasury is part of executive Government. My responsibility is to Parliament.

"If I looked at the books I would be able to report about the aspects that I think should be brought to attention."

Accountants for the prince insisted that the books were a private matter and were already properly audited.

Committee chairman Edward Leigh, a Tory MP, said it was the first time the PAC had scrutinised the Duchy of Cornwall's and Duchy of Lancaster's accounts and described the meeting as "historic".

Questioning the accountants of the duchies for the first time ever, MPs accused them of "fiddling" the figures and attacked the amount of money the Prince of Wales spends on housing and other matters.

Labour MP Gerry Steinberg charged the prince's financial advisers with "jiggery-pokery" and "fiddling" sums from previously untouchable capital accounts in a revenue account to which the Prince has access.

Labour MP Alan Williams said that Prince Charles "wins the national lottery every year".

He said the prince's accommodation at Clarence House, and the use of Windsor Castle, amounted to "the best housing benefit scheme in the world".

"Not bad as a side perk of the job," he added.

Since 1990, Mr Williams said, there had been a 300 per cent increase in revenue received by the prince from the Duchy of Cornwall. This is equivalent to £85 million - an annual average of £6 million over 14 years.

The PAC noted the duchy paid the prince £11.9 million last year, a sum which Mr Williams said was "incomprehensible" to his constituents.

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