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LONDON (Reuters) - MPs said on Thursday Prince Charles should be more open about the finances of the Duchy of Cornwall, the estate that provides him with most of his private income.

A report by parliament's Public Accounts Committee said the heir to the throne should play no direct role in the management of the estate and called for its finances to be more openly accountable.


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The committee said the duchy's finances needed to be more closely scrutinised, saying there were "obscurities".

The prince's hands-on role created a potential conflict of interest with future beneficiaries, the committee said.

"Our work has revealed obscurities and potential conflicts of interest in the management and governance of the duchies accounts," said Edward Leigh, the committee's chairman.

"I cannot understand why these accounts are not subject to the same disclosure requirements as other accounts presented to parliament."

The prince's private secretary, Michael Peat, said the committee's recommendations would be taken on board but added MPs might have misunderstood what the duchies were for.

"They are not public bodies. They are well-run private estates, specifically created to provide private income for the sovereign and the heir to the throne," he said in a statement.

"This also means that the taxpayer does not have to fund the large majority of The Prince of Wales's public duties."

The capital assets of the duchy, a historic landed estate of 56,229 hectares spread across 15 counties, are held in trust but Prince Charles draws an income from its revenue surpluses. That amounted to 13.3 million pounds in 2004-5.

Day-to-day management of the estate is overseen by the Prince's Council which Charles actively chairs.

The committee said he should follow the example of the Queen who has no direct part in the management of the Duchy of Lancaster -- the estate which provides her with an income.

Although the prince pays income tax on his earnings, MPs said both duchies should justify why they did not pay corporation or capital gains tax like other companies.

They also said the estate's accounts should be open to scrutiny by the independent financial watchdog, the National Audit Office.