Advisory Committee on Business Appointments

Christian Matheson Excerpts

Thursday 28th June 2018 Commons Chamber

[Christian Matheson (City of Chester) (Lab)]

I congratulate the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) on his recent knighthood, richly deserved after many years’ service in this place, and on the work of the Committee and the dogged way in which he and his Committee have gone after this particular issue. It is a lesson to all in the House about the value and the strength of Select Committees when they are well led and follow the evidence with robust questioning. I pay tribute to him and his Committee.

[Sir Bernard Jenkin]

I am most grateful to the hon. Gentleman for his tribute, but may I echo the comments of the hon. Member for Inverclyde (Ronnie Cowan)? We really do owe much of our work to the persistence of our absent friend, the hon. Member for Newport West (Paul Flynn), who has always contributed and motivated the Committee on this matter.

[Christian Matheson]

I am most grateful for that clarification and the House will have noted it.

The Advisory Committee on Business Appointments is entirely necessary, but, to use the phrase of the moment, not at all fit for purpose. The clue is in the name. The A in ACoBA stands for “advisory” and it is clear that the committee is just that: it has no teeth and if its harshest sanction is to embarrass—well, that is scarcely a sanction at all. I wonder whether, as currently constituted, it is even designed to make a difference with a very narrow remit. As far as I can tell, ACoBA has never actually refused an appointment.

ACoBA is appointed by the Government to provide independent advice to senior Crown servants and to all former Ministers of the UK, Scottish and Welsh Governments on any appointments they wish to take up within two years of leaving public or ministerial office. ACoBA applies the business appointment rules, which are largely procedural and set by the Government. They have no statutory basis and there are no sanctions for non-compliance. The rules apply for up to two years after leaving office and they are applied with inconsistency.

It is a clear failure of ACOBA that it cannot adequately distinguish between different types of post-ministerial appointment, for example paid as opposed to unpaid work. One former senior civil servant recounted to me the story of when they left the civil service. They took a position on the board of trustees of a community group. It took months upon months for this voluntary position to be approved. Part of the delay was down to due diligence, because the trust was a charity. If charities and the Charity Commission can undertake due diligence and prevent an appointment pending such checks, why can ACOBA not do that?

Meanwhile, as we have heard, the former Chancellor George Osborne can take a job with BlackRock in the City of London and not even tell ACOBA that he was taking a job editing the London Evening Standard. I understand the same applies to the former head of GCHQ, Robert Hannigan, who was appointed to the European advisory board for a new US cyber-security firm, BlueteamGlobal, and did not even tell ACOBA. Because it is set up as an advisory and non-statutory committee, ACOBA finds enforcement difficult. I suspect that this is the reason it does not attempt to enforce. Indeed, it may be the reason it was set up in this way in the first place.

In addition to ACOBA’s toothlessness, there are further problems, for example with conflicts of interest. There are numerous, multiple examples of members of the committee declaring interests in firms to which the applicants were being appointed, but not recusing themselves from those cases. This included Mary Jo Jacobi, who has financial interests in BP but did not recuse herself from Vernon Gibson’s application, and John Wood, who has interests in BT, did not recuse himself from Keith Bristow’s commission with them.

ACOBA was also criticised by the former Public Administration Committee for having an “establishment” make-up—the hon. Member for Harwich and North Essex raised this point. ACOBA is chaired by a Baroness and former Conservative Minister, who also works as a consultant for a company that looks very much like a lobbying firm. Other members of the committee include two Lords, a knight, a former general secretary of the First Division Association, lawyers and former senior civil service grandees. I go back to the evidence cited by the Chair of the Public Administration and Constitutional Affairs Committee about bus drivers or hairdressers. As he says, there seems to be no sight of them.

[Kelvin Hopkins]

My hon. Friend is making the point made by the Chair and other colleagues. Putting people on ACOBA who look like members of the establishment, honest though they may be, just reinforces the image among the public of the establishment looking after itself, instead of having ordinary people, maybe bus drivers and hairdressers, who are remote from the establishment on the committee.

[Christian Matheson]

I thank my hon. Friend for that point, but it is not simply about image. It is about having a different perspective. It is about approaching the question of an appointment from a different point of view, so that somebody from the outside, a bus driver or a hairdresser, can say, “Look, this really doesn’t look right from where I am sitting.” He makes an extremely good point, but the issue is about more than how it looks.

We welcome much of the report, including its finding that the problem of conflicts of interest

“has escalated, with increased numbers of public servants moving between the public and private sectors, and a number of very high profile cases resulting in declining public confidence in a system that was set up to command trust by mitigating any breaches of the Rules.”

It also states:

“The regulatory system for scrutinising the post public employment of former Ministers and civil servants is ineffectual and does not inspire public confidence or respect.”

It refers to

“numerous gaps in ACoBA’s monitoring process with insufficient attention paid to the principles that should govern business appointments.”

The report has several clear and pretty strong recommendations for ACOBA, including much greater transparency of data published about decisions, an amendment to the Ministerial Code, and the publication of applications on receipt and not after the fact. It also proposes the disclosure of full information about ACOBA‘s procedures for assessing applications and the reasons for its judgments.

Labour Members welcome the report as a starting point for the reform of ACOBA, but I disagree with the hon. Member for Harwich and North Essex, who said—although I may have misunderstood him—that reform might be quite difficult. I am not sure that it would be if enough attention were given to it, and as long as the political will was there, although I concede that he, rather than me, is the one who has done all the studying of the detail.

We have been calling for the reform of ACOBA since 2011. Whether the issue is the lack of diversity of its members, their own conflicts of interest, or indeed the very rules by which they work—or, indeed, do not work—it cannot continue to exist as a fig leaf that fails even in that role of concealing the revolving door. It should be entirely reconstituted, with clearer terms of reference and stronger powers to delay or block appointments that are not appropriate. By failing to act, or being unable to act, ACOBA highlights the fact that the current arrangements are simply not working, and it must be reformed.