The Government welcome the fifteenth report of the Public Accounts Commission on the corporate governance of the National Audit Office that was published today (HC 402).

As public auditor, NAO must command the respect of both Parliament and the diverse public sector it audits. It must remain independent so that it can report to Parliament impartially.

These sensible reforms will place it at the forefront of good corporate governance in the unique position it plays in British public life. The Government agree that the reforms will bring the governance of the NAO into the twenty-first century, giving it the moral authority it needs for the important work it does.

In line with the Prime Minister’s undertaking made in November 2007, the Government will now come forward with draft clauses to give effect to those parts of the Commission’s conclusions which require legislation. These will then be put in the constitutional renewal Bill for introduction.

I should like to record the Government’s appreciation of the Commission’s work, and of John Tiner’s valuable advice to them.