Gender Balance among Non-Executive Directors (EUC Report)

Debate between Lord Wilson of Tillyorn and Lord Elton

Thursday 10th January 2013 Lords Chamber

[Lord Elton]

My Lords, I rise briefly to support my noble friend Lord Boswell of Aynho and to carry forward a little what the noble Lord, Lord Kakkar, said about subsidiarity. When one examines the case put by the Commission, one is left wondering why it was so confident that it would work. Indeed, one is left wondering why it wanted to do it. It seems to me that one finds in the Commission an ambition to govern rather than to guide, whereas from where we sit we feel that the default position should be guidance and that the governing should be done by such a large central body presiding over such different, diverse and distant peoples only when it is essential so to do. I therefore ask your Lordships to bear in mind the points made so cogently by my erstwhile noble friend the noble Lord, Lord Pearson, and also so courageously, because he is always in danger of boring your Lordships. Nothing makes one less popular in this House than boring people, yet it is something about which we need to be not bored but alert. The weight is already so preponderantly in favour of the central Commission and so heavily against national parliaments that we really cannot afford to let one iota of it that we are able to keep slip through our fingers. Therefore, I support the Motion.

[Lord Wilson of Tillyorn]

My Lords, I, too, will speak very briefly and not delay the House too long, partly because I am a relatively new member of Sub-Committee B, at least in its present incarnation; I was a member of a previous incarnation some time ago.

The inquiry into women on boards was the first one that I attended as a member of the present Sub-Committee B and it was a very impressive process. The evidence, witnesses and written submissions that came before us were all very thorough, and everything pointed very clearly in the direction in which the committee itself reported. In other words, it is highly desirable to have more women on boards. It is an underutilised resource. Efforts must be made to increase the number of women on boards. In the UK this is happening steadily. There is no sustainable case for doing anything further by legislation rather than by encouragement. Indeed, most of the female proponents of more women on boards very strongly did not want that to happen. For me, it was a very interesting learning process.

With regard to this directive, the Commission is surely right in saying that it is desirable to have more women on boards. It is an underutilised resource, which is putting it rather mechanically, but it is absolutely true. But it is very strange indeed that the Commission goes on to say two contradictory things. First, it argues—although the arguments against have been quite strong—that there is a direct and positive advantage simply to having more women on boards, rather than the more subtle version that a good company gets women on boards and it is successful because it is a good and open-minded company. At the same time the Commission argues that we need a European-wide directive because there will be some countries that do not want to put themselves at a disadvantage by having more women on boards. It is a bit difficult to square that particular circle.

I do not think that the Commission’s proposals really stand up. Of course, what we are discussing this evening is whether they offend against the rule of subsidiarity. The points have all been made by others so I will not labour them. It seems absolutely clear that European-wide legislation does not add an advantage and that such is the diversity within Europe, with different types and structures of boards, that one size fits all simply does not meet the need of the moment. Therefore, I, too, support the recommendation of the noble Lord, Lord Boswell, that we should put in a reasoned opinion saying that what the Commission proposes offends against the procedures for subsidiarity.