Promotion of Women in Business

Debate between Julian Smith and Andrea Leadsom

Tuesday 22nd March 2011 Westminster Hall

[Julian Smith (Skipton and Ripon) (Con)]

I join this debate as a head-hunter—I declare that interest—who, until recently coming into the House, worked on senior-level executive search assignments for global organisations. I am the employer in an all-women company and the proud husband of a wife who has just set up a business as part of a job-share situation. I am also a colleague of some exceptional new MPs on both sides of the House, many of whom are women. It is unfortunate that more of my Opposition colleagues are not here today.

As a small business owner, I have spoken frequently about the avalanche of regulation and red tape that hit small businesses over the 13 years of the Labour Government, and the impact of such legislation globally on Britain’s competitive position in respect of inward investment compared with Hong Kong, Asia and other international locations. As a head-hunter, I saw that people were beginning to hire in those locations rather than the UK as a result of our employment law.

Therefore, I was pleased that Lord Davies chose not to advocate legislation in his report, “Women on boards”, which came out in February. I add that I could not find a copy of it in the House of Commons yesterday when I sought one—that was not a great indication of the importance of the topic.

When I first sat on the Government Benches last May, I realised that never in my life had I been involved in something so male. When I reflected on the companies for which I had recruited as a head-hunter, I thought again about the stark differences between those that had seriously taken an interest in diversity and put it at the top of the agenda of their organisations, and those that had not. When I listened to the debate on UN Women, which I thought was one of the most productive and positive debates in this House, I resolved to try to play my part on this issue. I compliment my hon. Friend the Member for Maidstone and The Weald (Mrs Grant) on securing this debate, and on all her work in this country and internationally—recently in Malaysia, I believe—on the issue.

Things have been improving, but progress is so slow. Statistics in the Lord Davies report show that 12.2% of directors of FTSE 100 companies are women, and that 7.3% of people on the boards of FTSE 250 companies are women. That is appalling. Our economy, which is on its knees, and which needs to use all its talents to get out of the current crisis and to deal with a competitive world, needs to address that. There are moral reasons as well: in a society that aspires to be equal, such statistics are not acceptable.

The best companies I have worked with in recruiting at senior level have not focused solely on women. Their big focus has been on diversity. They have been hard-wiring into their organisations the approach that it is not acceptable to come up with a shortlist of white males but instead it is better to come up with a diverse list of people and then select on merit. However, the number of organisations and companies that think that way is not as large as it should be, and we need to increase it over the next few years.

[Andrea Leadsom (South Northamptonshire) (Con)]

Recently, the Monetary Policy Committee announced that it was recruiting another white man, and that it was absolutely delighted—as, indeed, we all are—with the extremely talented gentleman whom it had chosen. In small print at the end, as an afterthought, it said that only one of the 27 applicants was a woman, and that it wished that more women had applied. Does my hon. Friend agree that it would be a good idea proactively to encourage more women to apply for senior roles?

[Julian Smith]

My hon. Friend makes an important point. There is a great deal of work to be done in the public sector as well as the private sector, but the Government now need to put significant pressure on the private sector, and not just on targets. One area I would advocate as well worth looking at is performance management generally in organisations. Can the Government do more to highlight those organisations that performance manage their staff and that look at things such as the approach that my hon. Friend the Member for Devizes (Claire Perry) suggested? Can we highlight, as well as company growth, those companies that manage their human resources positively?