Corporate Governance

Debate between Lord Jackson of Peterborough and Greg Clark

1st reading: House of Commons
Tuesday 29th November 2016 Commons Chamber

[Greg Clark]

When the hon. Gentleman reads the Green Paper, I think he will welcome our proposals, which address some of the points he is making to ensure that the pay of the top management is aligned with the long-term success of the company, and to require a greater connection between the workforce and the management, as well as customers and other groups. That is a step in the right direction, and as my colleagues have pointed out, business has warmly welcomed it. This is a timely and useful upgrade in the standard of corporate governance in this country.

[Mr Stewart Jackson (Peterborough) (Con)]

Untrammelled corporate greed is no more one of our party’s values than untrammelled trade union power is, so this is an authentically Conservative statement, which I welcome. May I press my right hon. Friend specifically on how he will ensure adequate scrutiny of institutional investors who are discharging their role in respect of corporate governance?

[Greg Clark]

My hon. Friend is absolutely right; Conservative Members believe in competition and that it provides the best possible environment, which has benefits to consumers, employees and taxpayers. That is very much our watchword. The Green Paper contains proposals on how we can encourage institutional investors, who, as I said, invest the money from pension funds to which many people in this country contribute, to be more active in exercising their stewardship of the companies in which they invest.

Recall of MPs Bill

Debate between Lord Jackson of Peterborough and Greg Clark

Tuesday 21st October 2014 Commons Chamber

[Greg Clark]

The drafting of the Bill reflects that undesirable risk that matters of conscience could result in the loss of a seat. A general election inevitably follows the MP’s selection. We all make policy arguments to our electorate each time, and the ability to do that is still in place.

[Mr Stewart Jackson (Peterborough) (Con)]

Several of us have serious worries about undermining not just the sovereignty of Parliament, but the sanctity of the general election. My right hon. Friend will know that Edmund Burke said in the 18th century that he was a representative, not a delegate. It is noteworthy that he was removed by the electors of Bristol in a general election shortly thereafter.

[Greg Clark]

My hon. Friend is absolutely right. Many hon. Members will be familiar with what Edmund Burke said:

“Your representative owes you, not his industry only, but his judgment; and he betrays instead of serving you if he sacrifices it to your opinion.”

He made that point very strongly and was promptly thrown out by the electorate at the next election, which illustrates the point arising from the intervention made by the hon. Member for Walsall North (Mr Winnick).

Our early exchanges have made it clear that the opposing poles—I hesitate to call them extremes—in the debate have good intentions, and reasonable and serious points are being made. In developing the proposals, the Government have tried to steer a sensible and reasonable course. We believe that recall has a role in dealing with serious wrongdoing. If an MP has been found guilty of serious wrongdoing and clear lines have been crossed, the public must have their say about whether that Member should remain in office.

We have stopped short of enabling recall on any grounds so that we preserve the freedom of Members of Parliament to vote with their conscience and to take difficult decisions without facing constant challenges, at the public’s expense, from their political opponents. We have, of course, considered a range of recall models, including those used internationally, but there is no direct equivalent in a constitutional system such as ours anywhere in the world, so we are breaking new ground, and it is the tradition of the House and the country that we proceed with care when making constitutional change.

--- Later in debate ---

[Greg Clark]

That is exactly what I was alluding to when I said that the Standards Committee is considering ways to strengthen its credibility with members of the public. My right hon. Friend has substantial experience of those issues from his time as Leader of the House. I am sure that he will make an important and serious contribution to the debate.

I recognise that the creation of a recall mechanism for Members of Parliament clearly raises the question of how recall might fit with the disciplinary arrangements for other office holders in future. The triggers in the Bill have been carefully designed to fit with the particular rules of this House, and for that reason cannot be automatically applied to the recall of other elected office holders. This is not, and is not designed to be, a one-size-fits-all piece of legislation—that would be even more difficult to establish a consensus around—but we must of course learn the appropriate lessons from its implementation, which might in future be applied to other areas. I know that there will be debate, both today and later, on which other areas it might be appropriate to extend recall to. However, this Bill is narrowly about Members of Parliament.

[Mr Stewart Jackson]

Returning to the point made by our hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) on the efficacy of primary legislation, the House might know that in 1947 the Labour MP Garry Allingham was expelled from the House for writing disobliging comments about fellow Members—not for any criminal offence—so there is a precedent for expelling a Member whose conduct falls below that which most electors would think suitable and appropriate.

Local Growth Deals

Debate between Lord Jackson of Peterborough and Greg Clark

Monday 7th July 2014 Commons Chamber

[Greg Clark]

My hon. Friend is nothing if not tenacious. I enjoyed my visit to Gloucester with him a little while ago. There will be other opportunities, because negotiations will continue. I dare say that Gloucestershire will build on its success.

[Mr Stewart Jackson (Peterborough) (Con)]

I warmly welcome the Minister’s statement, in particular on transport improvements on the A47 in north-east Peterborough and on the food manufacturing centre of excellence at Peterborough regional college. The imperative for this Government investment should be its impact on the labour market, so will the Minister give an undertaking to encourage LEPs to work collaboratively—for example, with the Department for Work and Pensions to have an impact on unemployment among young people, particularly those not in education, employment or training?

[Greg Clark]

My hon. Friend is absolutely right. I would like to extend more broadly the next phase of negotiations and discussions, so that where local authorities and businesses can make a real difference to some of our intractable social problems they will be given the chance to show that they can do that.

National Planning Policy Framework

Debate between Lord Jackson of Peterborough and Greg Clark

Tuesday 27th March 2012 Commons Chamber

[Greg Clark]

The default answer was a variation of a presumption that everyone agreed was not terribly helpful, and we have deleted it from the document.

[Mr Stewart Jackson (Peterborough) (Con)]

Among the plethora of policy failures under the previous Government, such as regional spatial strategies, parking and density targets, was the fact that between 1997 and 2005, 117,000 homes were built in floodplains. Does the document, which I strongly endorse and support, contain appropriate safeguards on residential development in floodplains?

[Greg Clark]

Yes, those protections remain.

Core Cities

Debate between Lord Jackson of Peterborough and Greg Clark

Thursday 8th December 2011 Commons Chamber

[Mr Stewart Jackson (Peterborough) (Con)]

The Minister’s reply to this urgent question shows that this Government are serious about civic renaissance. Will my right hon. Friend make efforts to speak to his colleagues in the Treasury about supporting tax increment financing and residential estate investment trusts, and about the development of more detailed special-purpose vehicles to access private sector capital to drive regeneration, not just in large cities, but in smaller ones such as Peterborough?

[Greg Clark]

My hon. Friend is absolutely right. One power that we are keen to see devolved to cities is a greater ability to invest in infrastructure, which can unlock growth and lead to financial prosperity. We have consulted on suggestions for tax increment financing and will propose our response shortly, but it is clear that cities want to be in the vanguard of using such powers.