Leigh: Unhappy at Mint's condition

The Royal Mint has come under fire from a cross-party committee of MPs.

The public accounts committee says the Mint has a "lax attitude" to financial control and slams the theft of £25,000 from a safe.

Plans to produce euro coins which led to 200 job losses are also described as "seriously flawed".

The committee which monitors government agencies warns that security at the Mint was not stepped up after a £5000 theft.

It concludes measures could have been put in place to avoid a subsequent theft of £25,000 in broad daylight.

The committee also calls for an end to the Royal Mint's crown immunity which can be hidden behind to avoid prosecution.

That criticism comes after it was revealed that the Mint faced no criminal action after the death of an employee.

The MPs conclude that security at the Mint's factory was "naive".

On the issue of the euro job losses committee chairman Edward Leigh said: "The Royal Mint's decision to embark on a major expansion programme to produce new coins for the launch of the euro was seriously flawed.

"These failings caused over 200 people to lose their jobs. The continued losses must be addressed by getting a firm grip on costs and productivity."

Gerald Sheehan, the chief executive of the Royal Mint, said improvements were being made.

"There is no quick fix for an organisation such as ours but I have reported to the public accounts committee that steady progress has been made in relation to a number of key corporate governance issues," he said.

"I have already taken the action necessary to fulfil the Royal Mint's obligation to maintain the highest ethical standards in conducting our business.

"I am also confident that we are on target to achieve our business plan for the 2002/2003 financial year."